MARKET OUTLOOK
- Cotton Association of India (CAI) on Wednesday further reduced its cotton crop estimate for the 2022-23 season, beginning October, by 10 lakh bales to 303 lakh bales as production is expected to decline in Maharashtra, Telangana, Punjab and Andhra Pradesh.
- Lower production could bring down cotton stocks at the end of 2022/23 marketing year to 1.4 million bales, the lowest in more than three decades, the trade body said.
- The Southern India Mills Association (SIMA), the apex body of textile mills in the south, has urged Finance Minister Nirmala Sitharaman to allow duty-free cotton imports to ensure raw material security, and avoid stoppage of production and fall in cotton textile exports.
- ISLAMABAD-Textile exporters have warned that decline in cotton production in the country would cause a major reduction in exports during the current fiscal year.
- Cambodia’s trade balance with South Korea has improved in the first quarter of 2023, with decreased imports and higher apparel exports
North Zone:
Cotton traded steady to easy tone across major spot market of north India on Thursday. Prices were quoted down to 20-25 / maund yesterday evening. Today weather clear. New crop – cotton traded at ready delivery – In Punjab, Rs 6,325-6,400 a maund. In Haryana, it offered at Rs 6,320-6,420 a maund. while in Upper Rajasthan, quoted readty delivery at Rs 6,525-6,625 a maund
Central Zone:
Cotton spot prices steady tone across west India market on Thursday. Sankar-6, new crop 29 mm (RD-75 & MIC-3.8), in Gujarat traded at Rs 62,500-63,000 a candy and 28.5mm (RD-74) quoted at Rs.61,500-62,000 a candy. V-797 trade at Rs 49,000-49,500 (12-15% trash condition) a candy for ready delivery. While in Maharashtra, new crop good grade cotton (29mm) quoted at Rs 61,500-62,000 a candy
South Zone:
Cotton spot price was steady tone across the major trading centers of south India
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INTERNATIONAL UPDATES
US Cotton Futures :
Triple Digit Losses In Old Crop Cotton: The cotton market saw old crop drop by triple digits, as May is now back to a discount to Dec. The new crop futures were also red on Wednesday, though losses were limited to 71 points. The Seam reported 5,463 bales of cotton were sold on 4/18 at an average gross price of 75.14 cents. The Cotlook A Index was another 25 points higher on 4/18 to 96.65 cents/lb. The AWP for cotton is 70.05 cents/lb. ICE certified stocks were 1,485 bales as of 4/14.
May 23 Cotton is at 83.24, down 131 points,
Jul 23 Cotton is at 83.65, down 118 points,
Dec 23 Cotton is at 83.50, down 71 points
