Why is the price of Chinese cotton rising from December?Since the beginning of December 2023, ZCE cotton futures have continued to rise, with the key contract rising from a low of 14,740yuan/mt to a high of 15,860yuan/mt on the morning of January 18, up more than 1,000yuan/mt. There is an increase. From a Mt fundamentals perspective, the sustained price increase during this period is primarily driven by good demand from downstream sectors. After cotton prices bottomed out in late November, the downstream textile industry experienced a sharp reduction in cotton yarn inventories due to pre-holiday replenishment demand, pressured demand and delayed demand from October and November. This event alleviates the cotton yarn trader's concerns about inventory, and the entire industry chain returns to smooth operations. Strong downstream demand supports the upward trend in cotton prices.Due to the performance of downstream textile mills, cotton yarn inventories have declined sharply since the beginning of December and have reached a relatively low level. However, cotton yarn sales have slowed recently due to the approaching spring festival. However, the basic situation of low inventory pressure in spinning mills and no significant inventory pressure has been established for cotton yarn traders. Therefore, textile mills are still in demand to buy cotton at favorable prices after a rapid decline in cotton thread inventory. The order position for textile factories remains better than expected, with some large-scale textile enterprises receiving orders by February or March, while smaller enterprises have a relatively poor order position. Overall, home textile orders remain strong. Considering the recent boom in tourism in Harbin, residents' willingness to travel remains stronger than during the epidemic period.From the latest market retail data, Chinese domestic sales demand in 2023 is also satisfactory, especially in November and December when the year-on-year growth rate of clothing retail sales continued to expand, reaching 11% for the full year. wentOverall, unless downstream demand declines significantly, the upward driving force in cotton prices will remain. However, the performance of downstream end-market demand after the Spring Festival needs to be verified. If end-market demand is weak, inventory pressures may reappear for cotton yarn traders, which may put pressure on cotton prices. Conversely, if end-market demand remains strong and hedging pressure gradually eases, cotton will be a strong driving force for price growth.Source: CCF
The rupee opened with weakness against the dollar today.The rupee opened with weakness against the dollar today. Today the rupee opened with a weakness of 3 paise at Rs 83.15 against the dollar. At the same time, on Thursday, the rupee strengthened by 2 paise and closed at Rs 83.12 against the dollar.Today BSE Sensex opened with a rise.Today, BSE Sensex opened at 71794.81 points with a gain of about 607.95 points. Whereas NSE's Nifty opened at 21643.50 points with a gain of 181.20 points. Today, trading started in a total of 1,979 companies on BSE.
This evening, the rupee strengthened by 2 paise and closed at Rs 83.12 against the dollar.Today Sensex closed at 71186.86 points with a fall of 313.90 points. Whereas Nifty closed at the level of 21462.30 points with a fall of 109.70 points.
38 lakh cotton bales came to Gujarat’s market yards till Jan 15The textile industry in Gujarat is optimistic as the arrival of cotton at market yards has been strong this season. According to data from the GujCot Association, the state has seen around 38 lakh bales (170kg each) from Oct 1 to Jan 15.The state is seeing about 45,000 bales arrive every day despite cotton prices being significantly lower than last year. Across India, cotton arrivals reached 1.35 crore bales till Jan 15. GujCot Association secretary Ajay Shah said, “By our estimates, Gujarat will have around 85 lakh bales for pressing in the cotton season of 2023-24 (Oct 2023 to Sept 2024). This year, arrivals have been stronger with a daily average of 45,000 bales in Gujarat. Last year, farmers were not selling the crop in volume, so arrivals were low. This year prices have decreased but farmers are selling cotton.”According to GujCot data, good quality raw cotton is priced at around Rs 1,450 per 20kg while low quality cotton is priced at around Rs 1,250 per 20kg. Processed cotton prices have remained at around Rs 55,000 a candy (356kg) for about a month, which has brought stability to the textile industry.Cotton prices had reached Rs 1.10 lakh per candy due to low supply in May 2022 and this affected the textile industry badly. Since Dec, cotton yarn export orders have also increased, according to the Spinners Association Gujarat. (SAG).source: Times of India
Rupee opened with 3 paise weakness against dollar today The rupee opened with weakness against the dollar today. Today the rupee opened with a weakness of 3 paise at Rs 83.17 against the dollar. At the same time, on Wednesday the rupee closed at Rs 83.14 against the dollar with a weakness of 7 paise.Today BSE Sensex opened with a decline.Today, BSE Sensex opened at the level of 71100.13 points with a fall of about 400.63 points. Whereas NSE's Nifty opened with a fall of 121.80 points at the level of 21450.20 points. A total of 2,019 companies started trading on BSE today.
This evening, the rupee closed at Rs 83.14 against the dollar with a weakness of 7 paise.Nifty below 21,600, Sensex falls 1,628 pointsToday Sensex fell by about 1628 points and closed at the level of 71500.76 points. Whereas Nifty closed at the level of 21572.00 points with a fall of 460.30 points.
Today, the rupee opened at Rs 83.14, down 8 paise against the dollar. BSE's Sensex opened at 71815.22, down around 1313.55 points. At the same time, Nifty of NSE opened at the level of 21647.30 points with a fall of 385.00 points.
Spinners see a boost as China buys 6,000 tonnes of yarnThe textile industry has been struggling with low demand for almost a year but is now optimistic. This is mainly due to reduction in inventory across the value chain, China buying 6,000 tonnes of cotton yarn last month and fresh orders by many big players.Spinning mills in Gujarat are running at about 80% capacity and demand is expected to remain stable over the next few months.The last month has also seen an improvement in demand in the domestic market as cotton prices have stabilised. There are more than 125 spinning mills in Gujarat and their installed capacity is more than 45 lakh spindles.Jayesh Patel, senior vice-president, Spinners Association Gujarat (SAG), said, “Cotton prices are stable at around Rs 55,000-55,500 per candy and cotton arrivals in the market have been good. Yarn prices are at Rs 235-237 per kg (30 count) and though still a bit high, we have seen export orders coming in. China bought about 300 containers (about 6,000 tonnes) of yarn last month. Most of its supply is coming from Gujarat. Many global brands have also started placing orders.Patel said the entire textile value chain has witnessed lower demand mainly due to accumulation of inventory. As inventory levels fall, demand has increased again.“There is a liquidity problem in the market, but we hope the situation will return to normal soon.” Bharat Chhajed, former chairman of PDEXCIL, said, 'Last month also, there is an improvement in demand in the domestic market. Traders in Ahmedabad are buying gray fabric with confidence due to improving demand scenario. Cotton prices have also seen some stability and this has increased demand.
This evening, the rupee closed at Rs 83.07 against the dollar with a weakness of 19 paise.Whereas today the Sensex fell by about 199.17 points and closed at the level of 73128.77 points. Whereas Nifty closed at the level of 22032.30 points with a fall of 65.20 points.
Today the rupee opened with a weakness of 9 paise against the dollar.The rupee opened with weakness against the dollar today. Today the rupee opened with a weakness of 9 paise at Rs 82.97 against the dollar. At the same time, on Monday, the rupee strengthened by 4 paise and closed at Rs 82.88 against the dollar.Today Nifty and Sensex opened with heavy losses. Today BSE Sensex opened with a fall of 113.99 points at the level of 73213.95 points. Whereas NSE's Nifty opened with a fall of 35.30 points at the level of 22062.20 points. Today trading started in a total of 2,165 companies on BSE.
Today the rupee strengthened by Rs 4 and closed at 82.89 against the dollar.At the end of trading, the Sensex closed at 73,327.94 with a gain of 759.49 points or 1.05 percent. Whereas Nifty closed at the level of 22097.45 with a gain of 202.90 points or 0.93 percent.
Punjab: Over 25% of Cotton Sold Below Minimum Support PriceAbout 2.46 lakh quintals of cotton, encompassing both narma and kapas, has been procured at rates below the MSP, according to reports.More than 25% of cotton, including desi kapas, has been sold by farmers below the Minimum Support Price (MSP) during the current cotton season in Punjab.According to a report by The Tribune, as of January 6, a total of 9.79 lakh quintals of cotton had arrived in state mandis. The Cotton Corporation of India (CCI) has purchased 1.76 lakh quintals, while private traders acquired 7.98 lakh quintals.Khairat Lal, a cotton grower in Sappanwali village of Abohar told The Tribune he was forced to sell his cotton at much lower rates than the MSP.“I could manage to sell the narma for Rs 6,500 per quintal. Last year, I had sown cotton on five acres, but because of low returns, this year, I cultivated cotton on just one acre, bringing most of my land holding under kinnow and other horticulture crops. However, this year, even kinnow has not been able to give good returns,” he was quoted as saying.The daily added that 2.46 lakh quintals of cotton, encompassing both narma and kapas, has been procured at rates below the MSP. The total cotton cultivation area for this season stands at 1.73 lakh hectares. The MSP for cotton is set at Rs 6,620 for medium staple (narma) and Rs 7,020 for long staple (desi cotton). Despite the initial high prices of Rs 8,351 per quintal for kapas and Rs 8,200 per quintal for narma, the market dynamics have taken a toll. As the cotton supply inundated the mandis, prices plummeted significantly. The lowest price observed was Rs 3,000 per quintal for narma, and for desi cotton or kapas, it reached a minimum of Rs 6,500 per quintal.Wazir Singh, another cotton grower in Abohar, was quoted as saying that the high-velocity winds just before harvesting had damaged the crop as had the pink bollworm attack. “Last year, I got a good price of Rs 7,500 per quintal, but this year, I could get just Rs 6,500 per quintal,” he said.
Cotton farmers have started protesting in Adilabad due to high transportation charges.Cotton procurement from farmers at Adilabad Market Yard began with a delay of about five hours on Friday. Farmers' protest and traders' refusal to buy cotton created a tense atmosphere in the market. Adilabad BJP MLA Payal Shankar and Additional Collector Shyamala Devi intervened and held discussions with officials and traders. The market was closed on Thursday, and with the onset of the Sankranti festive season, a large number of farmers arrived with their cotton produce. Around 2,500 vehicles in the market yard.Although the scheduled time for cotton procurement to begin was 8 a.m., it did not begin until noon. Concerned farmers staged a protest in front of the market yard office. They claimed that the cotton was brought to the market courtyard early in the morning from far-flung places and additional charges were demanded for the waiting time. He also demanded government intervention in the cotton procurement process.On the other hand, traders refused to make purchases citing inability to clear cotton stock from ginning industries citing shortage of lorries. Cotton Traders Association President Raju Chintavar highlighted the consistent increase in transportation prices through lorries in the last three years by lorry owners, despite fluctuating diesel prices. This time, the increase was Rs 4,000, taking the transportation cost from Adilabad to Guntur to Rs 41,000 without loading charges.Chintawar said the direct burden of increased prices fell on farmers as cotton stock prices remained stagnant due to shortage of lorries for transportation. On getting information about the matter, Adilabad MLA Payal Shankar and Additional Collector Shyamala Devi visited the market courtyard and held discussions with traders and protesting farmers. He urged both the lorry association and ginning industrialists to bring any problems to the notice of the administration and the state government and said that farmers should not face problems.
CCI's absence leads to distress selling in Abohar cotton marketBATHINDA: Four times this harvesting season, the Cotton Corporation of India (CCI) has stayed away from Abohar, one of the biggest raw cotton markets in Punjab, over quality issues and has come up with relaxations following protests. This slowed down purchases and created a crisis in sales, which benefited private agencies.Cotton in the season 2023-24 is being sold at up to Rs 4,400 per quintal, while the minimum support price (MSP) is at Rs 6,920 for 27.5-28.5-mm long staple and Rs 6,770 for 26.5-27 mm long staple.The harvesting season is from October to March–April. During this period, farmers occupied the Abohar-Fazilka highway thrice and blocked the gate of Abohar grain market once. Each time, the administration intervened and persuaded CCI to make the purchase. Even on Thursday evening, Fazilka Deputy Commissioner Senu Duggal and Senior Superintendent of Police Manjeet Singh Dhesi mediated between the protesting farmers and CCI, after which the corporation agreed to purchase the crop from Friday. During the days it remained away, about 30,000 quintals of raw cotton was deposited in the Labh market of Abohar, the crop of which also comes from Rajasthan.Punjab State Agricultural Marketing Board estimates that 10 lakh quintals of raw cotton will arrive for purchase by January 12. Of this, private players bought 8.2 lakh quintals or 82% of the stock, while the government agency bought only 18%. Private agencies purchased 2.61 lakh quintals or 26% of the stock below MSP. Cotton grower Gurdev Singh said: "It was a double blow for farmers as cotton coverage in Punjab dropped to the lowest in decades at 1.75 lakh hectares due to two seasons of pest attacks." Fellow cotton farmer Karnail Singh said: “That is why farmers demand legal guarantee of MSP. “How can the government think about diversification under these circumstances?”Fazilka DC Senu Duggal said, “We formed a committee of farmers, CCI officials, representatives of Abohar sub-divisional magistrate and the concerned local station house officer (SHO) to ensure that the cotton procurement is done as per the rules.” A CCI official, on condition of anonymity, said the agency is not purchasing bulk cotton as its quality is below the prescribed standards.
The rupee strengthened by 11 paise to close at Rs 82.92 against the dollar this evening.Today, the Sensex closed at 72568.45 points with a gain of around 847.27 points. At the same time Nifty closed at the level of 21894.50 points with an increase of 247.30 points.
GHCL Textiles signs MoU for investing Rs 535 crore in Tamil NaduGHCL Textiles Ltd, a manufacturer and supplier of 100 per cent combed cotton compact ring spun yarns, cotton open end yarns, 100% synthetic and blend ring spun yarns, vortex yarns and TFO yarns signed an MoU with the Government of Tamil Nadu for an investment of Rs 535 crore, at the just concluded Global Investors Meet 2024. The MoU was signed in the presence of Chief Minister MK Stalin, senior ministers, and officials of the Government of Tamil Nadu. GHCL Textiles was represented by R Balakrishnan, CEO and N Rajagopal, Sr.GM (Technical).The MoU entails investments for capacity expansion as well as investments in renewable energy in Tamil Nadu. Once implemented, GHCL Textile’s total investment in the state will be over Rs 1035 crore and its renewable energy portfolio will expand to 75 MW, it said in a statement. RS Jalan, Director, GHCL Textiles, said, “It is our honor to be a part of the state and India’s growth journey. These investments are in line with our promise to consistently deliver value for our stakeholders through sustained expansion in earnings. Over the next four years, the investments will be used for capacity and product basket expansions, vertical integration of textile manufacturing to include knitted and woven finished fabrics as well as the enhancement of Green energy portfolio. Thus amplifying our value added product basket, accelerating growth and positioning us among the top-tier industry leaders.” GHCL Textiles has a capacity of 2,25,000 ring spindles, 3,320 rotors, 480 vortex and 5760 TFO spindles. With clearly defined quality norms and strict process control, it has the capability to tailor-make products to suit specific applications and service premium buyers in domestic and international markets, the company said.
| title | Created At | Action |
|---|---|---|
| Why is the price of Chinese cotton rising from December? | 19-01-2024 19:00:30 | view |
| The rupee opened with weakness against the dollar today. | 19-01-2024 17:24:34 | view |
| This evening, the rupee strengthened by 2 paise and closed at Rs 83.12 against the dollar. | 18-01-2024 23:26:54 | view |
| 38 lakh cotton bales came to Gujarat’s market yards till Jan 15 | 18-01-2024 18:30:27 | view |
| Rupee opened with 3 paise weakness against dollar today | 18-01-2024 17:22:44 | view |
| This evening, the rupee closed at Rs 83.14 against the dollar with a weakness of 7 paise. | 18-01-2024 00:56:22 | view |
| Today, the rupee opened at Rs 83.14, down 8 paise against the dollar. | 17-01-2024 17:37:09 | view |
| Spinners see a boost as China buys 6,000 tonnes of yarn | 17-01-2024 01:36:32 | view |
| This evening, the rupee closed at Rs 83.07 against the dollar with a weakness of 19 paise. | 16-01-2024 23:26:08 | view |
| Today the rupee opened with a weakness of 9 paise against the dollar. | 16-01-2024 17:25:16 | view |
| Today the rupee strengthened by Rs 4 and closed at 82.89 against the dollar. | 15-01-2024 23:27:46 | view |
| Punjab: Over 25% of Cotton Sold Below Minimum Support Price | 15-01-2024 18:25:33 | view |
| Cotton farmers have started protesting in Adilabad due to high transportation charges. | 13-01-2024 18:24:40 | view |
| CCI's absence leads to distress selling in Abohar cotton market | 13-01-2024 17:58:30 | view |
| The rupee strengthened by 11 paise to close at Rs 82.92 against the dollar this evening. | 12-01-2024 23:34:29 | view |
| GHCL Textiles signs MoU for investing Rs 535 crore in Tamil Nadu | 12-01-2024 18:18:12 | view |
