Trade sources reported that as cotton futures on ICE ease due to muted global demand and better crop prospects in countries like Australia, multinational traders in the Indian market have begun off-loading their stocks. The May cotton futures contract on ICE, which peaked at 103.80 cents on February 28, has since dropped to 85.89 cents on April 10. Similarly, the December 2024 contract is hovering around 82 cents.
International prices have fallen by 17-18% as weak global demand, particularly from countries like China, weighs on the market. Domestically, prices have also dipped by 8-9%. Ramanuj Das boob, a sourcing agent, noted a slow market movement with multinationals selling for upcoming deliveries. Prices are now at ₹60,000-₹62,000 per candy, 3% lower than the previous month.
While there’s ample stock with the Cotton Corporation of India and traders, slow arrivals in states like Maharashtra and Gujarat are impacting the market. Pradeep Jain highlighted poor demand and farmers holding back stocks. North Indian mills have secured supplies for the next six months due to cautious buyer behaviour amidst low yarn demand. The estimated cotton production for the 2023-24 season has been revised upward by the COCPC to 323.11 lakh bales.
