Just when it felt like the market was getting ready to challenge major support below 82 cents, a late session rally lifted values back into the ‘comfort zone’. It is not clear what prompted the buying of some 2’500 December near the close, with potential reasons ranging from the lifting of hedges against export business to rumors about China’s Reserve sales policy.
China was an active buyer this week, as mills were trying to fill newly issued quotas, rumored to be in excess of 250’000 tons, t
Cotton futures in India, the world's second-largest grower, are expected to drop this week due to supplies from the new harvest amid sluggish demand from millers, while estimates of higher output are also seen weighing on sentiment.
Supplies from the new harvest have started coming into the local markets in small quantities and are expected to gain pace in the coming weeks, spot traders said.
"Arrivals from the new season crop are expected to keep cotton prices lower in the short term," s
The prices have fallen mainly due to a fall in demand from fabric makers. A huge inventory pile-up has prompted buyers to go slow on fresh purchases.
Cotton yarn prices have declined five-seven per cent in the past fortnight, owing to high inventory and low demand. Sources said the recent fall in yarn prices could also be attributed to a fall in cotton prices.
“Yarn prices have fallen mainly due to the fall in demand from fabric makers. A huge inventory pile-up has prompted buyers to go s
