Cotton yarn prices down in south India,new arrival dampens sentiments

South India’s cotton yarn prices slipped further today as buy—ing dried up.New cotton arrival in north India has given a signal that prices are likely to fall in the coming days.Mumbai noted a decline of5—20 per kg,while carded yarn lost2—6 per kg in Tiruppur.Spinning mills in Gujarat and other regions reduced theirselling prices by5—10 per kg.

Mumbai market witnessed a steep fall in cotton yarn prices.The decrease in buying from the weaving industry and the payment crisis dragged cotton yarn prices down by5—20 per kg.A trader from Mumbai market said,“There was already limited demand for cotton yarn.This further declined because of the bearish trend in cotton prices due to arrival of new crop in some mandis.”

The entire value chain became cautious as most buyers preferred to wait and watch for the market to bottom out.The payment crisis was also a factor for the bearish trend.60 count carded cotton yarn of warp and weft varieties were traded at1,750—1,800 and1,650—1,700 per 5 kg (GST extra) respectively.80 carded (weft)cotton yarn was sold at1,720—1,750 per 4.5 kg.44/46 count carded cotton yarn (warp) was priced at340—350 per kg.40/41 count carded cotton yarn (warp) was sold at335—340 per kg.40/41 count combed yarn (warp)was priced at385—390 per kg.Cotton yarn prices re—mained bearish in Tiruppur market.

Traders said that carded cotton yarn was traded with a decline of2—5 per kg as new cotton arrival in north In—dia deterred buyers to hold on to new purchases.A trader from Tiruppur expressed,“New cotton prices for October delivery are quite cheaper than spot prices.Such differ—ence in prices discouraged the weaving industry from further buying.New cotton arrival in other regions began in October only,but north India’s arrival dampened senti—ments all over India.”

Today,30 count combed cotton yarn was traded at350—355 per kg (GST extra),34 count combed at362—367 per kg and 40 count combed at370—375 per kg in Tiruppur market.Cotton yarn of 30 count carded was sold at330—335 per kg,34 count carded at338—343 per kg and 40 count carded at347—352 per kg.

In Gujarat,cotton prices steadied amid slower de—mand.Old cotton arrival was also negligible.New cotton arrival from Karnataka was very limited and insignificant for the market.Last season’s Shankar—6 cotton was traded at85,000—95,000 per candy of 356 kg in the spot market of Gujarat.