Ripples of stock market crash in India felt in cotton yarn market

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The 1,545 points fall in BSE Sensex on Monday resulted in cash crunch with traders, as they had to divert their liquidity to stock market to average out their holdings. As a result, sluggish trend was noticed in Indian cotton yarn markets of Mumbai, Ahmedabad and Surat. However, Tiruppur recorded higher prices due to better demand from downstream industry.

In Mumbai, poor demand form powerlooms also dragged down cotton yarn prices. Many powerlooms are temporarily closed due to poor demand for fabrics from the garment making industry, market sources told Fibre2Fashion.

In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded lower by ₹10-20 at ₹1,940-2,000 per 5 kg and ₹1,680-1,720 per 5 kg respectively. 80 count carded cotton yarn of weft variety was sold at ₹1,870-1,900 per 4.5 kg with loss of up to ₹20 per 5 kg. Carded cotton yarn (44/46 count) of warp variety was sold at ₹1,740-1,765 per 5 kg.

The 1,545 points fall in BSE Sensex on Monday resulted in cash crunch with traders, as they had to divert their liquidity to stock market to average out their holdings. As a result, sluggish trend was noticed in Indian cotton yarn markets of Mumbai, Ahmedabad and Surat. However, Tiruppur recorded higher prices due to better demand from downstream industry.

Ahmedabad-based industry veteran Narayan Lakhotia told Fibre2Fashion that summer demand is improving gradually, but export demand is yet to come. Foreign buyers from the US and Europe are postponing their orders due to the spread of Omicron variant.

In Ahmedabad-Rajkot market 30ch (Combed Hosiery) cotton yarn was traded at ₹352-357 per kg. 30 KH (Carded Hosiery) yarn was sold at ₹325-330 per kg, while 20 KH at ₹303-308 per kg.

However, Tirupur market had witnessed better demand from fabric manufacturers as summer season has begun after Pongal. A trader from Tirupur said that garment manufacturers are stocking their raw material to fulfil their further requirement.

Cotton yarn prices increased by ₹3-8 per kg in Tiruppur market. Cotton yarn of 30 count combed was traded at ₹355-360 per kg, 34 count combed at ₹370-375 per kg and 40 count combed at ₹390-400 per kg. Cotton yarn of 30 count carded was sold at ₹315-325 per kg, 34 count carded at ₹330-340 per kg and 40 count carded at ₹345-355 per kg, according to Fibre2Fashion’s market analysis tool TexPro.

ZCE cotton yarn May 2022 futures traded lower by CNY 25 at CNY 28,975 per ton and September 2022 traded steady at CNY 28,435 per MT today. ICE cotton futures scaled lower on Monday amid stronger dollar and a sell-off in equity markets as Russia and the West escalated their conflict over Ukraine. Cotton contract for March 22 closed at 120.4 cents, down 35 points; May 2022 closed at 117.79 cents, down 19 points, December 2022 closed at 98.36 cents, down 49 points. “There was selling pressure that we’re seeing on the stock markets and just across the board here. All around markets are just a little bit spooked today. Strengthening dollar is also weighing on cotton prices,” said an analyst.

Meanwhile, cotton prices were stable in the markets of Maharashtra on Tuesday amid limited demand from spinning mills, while daily arrivals saw a decline. In Nagpur and Yavatmal line, 30 mm variety of cotton was priced at ₹77,500-78,000 per candy of 356 kg each, 29.5 mm at ₹76,500-77,000 per candy and 29 mm variety of cotton at ₹75,500-76,000 per candy. In Jalgaon-Khandesh line, 29mm RD 75 variety of cotton was priced at ₹75,000-75,500 per candy. In Akola line, the price of 29 mm variety of cotton was ₹75,000-75,500 per candy and 28.5 plus cotton was priced at ₹74,000-74,500 per candy.

Fibre2Fashion News Desk (KUL)

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