New cotton prices fall due to fewer buyersIncrease in cotton supply in the spot markets amid decline in buying from textile mills has pushed down the prices of new season cotton, leading to increased buying by the Cotton Corporation of India (CCI).Cotton traders said the daily arrival of cotton in the spot markets of Madhya Pradesh is estimated at 40,000 quintals, of which more than 60 percent is procured by CCI.Kailash Aggarwal, a cotton farmer and owner of ginning units in Khargone, said, “This is the peak season when mills buy cotton in bulk, but this time the demand has gone down and this has left ginners with huge stocks. “Supply is abundant in spot markets but buyers are few.”Traders said, CCI has started procurement since last one month, but it has increased in last one week amid surge in arrival of farmers.Most of the quality produce is purchased by CCI from farmers at minimum support price, he said. Traders said the decline in demand for cotton has increased the concerns of farmers and ginners. Traders said cotton was trading at Rs 54,000 per candy in the spot markets of MP, while in October it was Rs 62,000 to Rs 63,000 per candy.
This evening, the rupee strengthened by 14 paise and closed at Rs 83.14 against the dollar.Today the Sensex closed at 71106.96 points with a gain of about 241.86 points. Whereas Nifty closed at the level of 21349.40 points with a gain of 94.40 points. Apart from this, a total of 3,883 companies were traded in BSE today, out of which about 2,443 shares closed with gains and 1,317 shares closed with decline. There was no difference in the share prices of 123 companies. Today, 241 stocks have closed at their 52-week high.
Cotton supply estimated at 345 lakh balesThe Cotton Association of India (CAI) estimates the total cotton supply in the country for the 2023-24 cotton season to be 345 lakh bales (170 kg each).It has retained the cotton pressure estimate for the 2023-24 season at 294.10 lakh bales. The association said the total consumption would be 311 lakh bales. CAI estimates that the total cotton production from Gujarat will be about 9 lakh bales less than last year's 85 lakh bales.CAI released the November estimate of 294.10 lakh bales for cotton pressing numbers for the 2023-24 season starting October 1, 2023.Total supply by the end of November 2023 is estimated to be 92.05 lakh bales, which includes arrivals of 60.15 lakh bales in market yards, imports of 3 lakh bales and opening stock of 28.90 lakh bales.Furthermore, CAI estimates that cotton consumption by the end of November 2023 will be 53 lakh bales while export shipments during this period are estimated at 3 lakh bales.CAI estimates consumption for the 2023-24 season at 311 lakh bales. Consumption by November 30, 2023 is estimated to be 53 lakh bales. Gujarat is the largest cotton producing state in the country and its cotton supply this year will be around 85 lakh bales, compared to around 94 lakh bales last season.Source: TOI
CCI purchased 9 lakh bales.According to the Cotton Association of India (CAI), cotton production for the 2023-24 (October-September) season is estimated at 296 lakh bales - the lowest in 15 years.Amid low demand, pink bollworm infestation has made cotton less attractive in the Indian market. Moreover, farmers have been left to knock the doors of the Cotton Corporation of India (CCI). So far, the nodal agency has procured around 9 lakh bales (at MSP) worth around ₹3,600 crore this season.The government has fixed the MSP for medium staple cotton at ₹6,620 per quintal and for long staple cotton at ₹7,020 per quintal."We have procured around 9 lakh bales across India. Now, our share in procurement is 30-40% of daily arrivals," said Lalit Kumar Gupta, chairman and managing director of CCI.He said the pace of procurement across India has reached 2 lakh bales per day. “Maximum procurement takes place in Telangana and Andhra Pradesh where prices are low.” The lowest market price of cotton in Telangana is around ₹5,500 per quintal and in Andhra Pradesh it is around ₹4,200. Meanwhile, infection is not a matter of concern in these states.Due to pink bollworm infection, farmers in states like Punjab, Haryana and Rajasthan are finding it difficult to sell their cotton to CCI. Gupta said, while other states are providing good quality cotton, cotton coming from Punjab, Haryana and Rajasthan is largely affected."In Punjab, Fazilka and Muktsar are two districts where quality is an issue. Both these districts are affected by pink bollworm. Therefore, most of the cotton coming to CCI is either infected or damaged cotton. We cannot compromise on quality." "We need to purchase carefully. We buy only cotton that meets the quality standards," Gupta said.CCI has purchased cotton worth ₹120 crore in Punjab. The agency is purchasing around 1,500-2,000 bales daily from the area. Gupta said farmers generally expect to procure cotton from CCI, even if the quality is not up to standards. "We are holding a coordination committee meeting with various officials. We are coordinating with the government to address various concerns."Meanwhile, another region where cotton prices have declined is Maharashtra. “CCI has set up centers here and farmers are slowly coming to the centres.”
This evening, the rupee closed at Rs 83.28 with a weakness of 11 paise against the dollar.Today passed amidst huge ups and downs in the stock market. Today the stock market opened with a huge fall, but finally closed with a good rise. Today the Sensex closed at 70865.10 points with a gain of 358.79 points. Whereas Nifty closed at the level of 21255.00 points with a gain of 104.80 points.
Today where the Sensex closed with a fall of around 930 points.The rupee strengthened by 1 paise to close at Rs 83.17 against the dollar this evening.Today, the Sensex closed at the level of 70506.31 points with a fall of around 930.88 points. At the same time Nifty closed at the level of 21150.20 points with a fall of 302.90 points. Apart from this, a total of 3,921 companies traded on the BSE today, out of which around 661 shares closed with gains and 3,175 shares closed with declines. There was no difference in the share price of 85 companies. Today, 352 stocks closed at 52-week highs.
Major events in the international cotton market in 2023International cotton prices showed a volatile trend in 2023. The supply side was supported by speculation about production cuts in the first half of the year, but after the market absorbed this bullish factor, support became limited. On the consumption side, the weak trend continued as the stocking process of textile and apparel products in various countries has not yet ended, and expectations for the peak season were reduced. There were few new orders and the global consumption recovery process was slow. Global cotton prices were under downward pressure as the new crop for the 2023/24 season gradually hit the market. Presently the arrival of cotton is at its peak, more than 2 lakh bales are arriving every day. The price of cotton and cottonseed is at its lowest level of Rs 2200, the main reason for which is said to be the reduction in oil content by pink bollworm due to which only 50 percent oil is coming out of the cottonseed.January :2022/23 global cotton production forecast shifted from production growth to production decline, with the Cotton Association of India broadly adjusting its Indian cotton production forecast downwards in its January report.February :Pakistan's foreign exchange reserves decreased, huge fall in Pakistani rupeeExport sales of American cotton increased significantly.marchThe USDA projected higher cotton inventories in the 2022/23 season in its March report.Banking system issues caused cotton prices to decline.Brazilian cotton prices declined due to increasing export pressure.aprilUS cotton export sales entered the oversold phase and cuts increased.MayIndian cotton arrivals increased against the weather.US cotton abandonment was expected to decline by half from the previous year.juneProgress on new cotton planting in America was slowjulyStrong expectations for good cotton production in Brazil and Australia.CONAB estimates that Brazilian cotton inventory accumulation pressure has increased.China announced allocating an additional 750kt sliding-scale duty quota.augustSoil moisture in Texas, USA deteriorated and the good-to-excellent ratio of American cotton was reduced.USDA cuts US cotton production by a massive 550kt.SeptemberThe rainfall gap in India widened and expectations regarding production shifted from production growth to production cuts.Brazilian agricultural products rushed to market, causing shortages in shipments and making cotton difficult to ship.Supply increased markedly as Pakistani cotton entered the market earlier.octoberUS cotton export sales increased due to purchases from ChinanovemberIndian cotton prices reached MSP and CCI started purchasing seed cotton.Delayed rains forced growers in Brazil to plant cotton instead of soybeans.DecemberUSDA forecasts global cotton consumption to decline.Source: CCF
The rupee closed at Rs 83.18 this evening with a weakness of 12 paise against the dollar.Today, the Sensex closed at 71437.19 points with a gain of around 122.10 points. At the same time Nifty closed at the level of 21453.10 points with an increase of 34.40 points.
This evening, the rupee closed at Rs 83.06 with a weakness of 6 paise against the dollar.Today Sensex closed at 71315.09 points with a fall of 168.66 points. Whereas Nifty closed at the level of 21418.70 points with a fall of 38.00 points. Apart from this, a total of 4,028 companies were traded in BSE today, out of which about 2,176 shares closed with gains and 1,711 shares closed with decline. There was no difference in the share prices of 141 companies. Today 385 stocks have closed at their 52-week high.
Collaborative government-private approach needed to increase awareness of PBW pest & solutions available to prevent crop damage in cottonStressing that timely intervention is key to prevent crop damage in case of pink bollworm (PBW) pest as seen in cotton crop in northern India, an industry expert has suggested a collaborative government-private approach to increase the awareness as solution is available if the pest is detected in time.“Solutions are available. What is lacking is the awareness about the PBW among the farmers,” NK Rajavelu, CEO of Godrej Agrovet’s crop protection division, told businessline.Explaining further, he said farmers normally come to know about PBW impact only when they start seeing the boll bursting around the harvesting time. But the point is in PBW, the adult moth lays the egg during the flowering time itself inside the flower. So, the eggs once they hatch in the flower, the flower closes and becomes a boll. So, they start getting into larvae everything inside and when the boll burst then the PBW impact is seen. So, the awareness of this has to be communicated to the farmers at the time of flowering stage itself, Rajavelu said.Asked who should take the responsibility of educating the farmers, he said both private companies and the government agencies. “The extension arm of the government, for instance KVKs should have programmes especially for the cotton areas, how to really monitor the PBW attack from the beginning. Because it’s very difficult to identify the eggs inside the flower,” he said.Further, he mentioned that there are some monitoring mechanisms like the moth activities available which farmers can observe. “If the moth activity is there then you start spraying the chemicals or put pheromones around the cotton areas even before the pest attacks becomes serious,” he said.Output hitThough it is not that PBW appears every year, still it is imperative to help the farmers to understand that there are solutions available right from chemicals to pheromones, Rajavelu said. “If these are not used at the proper time, at the flowering time, then nobody can help. So that awareness programme has to be enhanced in terms of how to educate the farmers,” he said.Cotton crop in many parts of the northern region got damaged in 2023 due to deficient rain and pink bollworm pest to the extent of 65 per cent in Haryana and Punjab and 80-90 per cent in Rajasthan. The Agriculture Ministry has estimated cotton production this year to be lower by 6 per cent at 31.66 million bales (of 170 kg each) from 33.66 million bales in 2022.He is also hopeful that technologies like internet of things (IOT) and drone definitely will help in the longer run, but “today I do not think we have that type of technology. Probably there is an opportunity for companies like us and even government to work on that to help the farmers.”
This evening, the rupee strengthened by 33 paise and closed at Rs 83.00 against the dollar.Today the Sensex closed at 71483.75 points with a gain of about 969.55 points. This is a record closing level for Sensex. Whereas Nifty closed at the level of 21456.70 points with a gain of 274.00 points. This is the record closing level of Nifty.
This evening, the rupee strengthened by 7 paise and closed at Rs 83.33 against the dollar.Today Sensex closed at 70514.20 points with a gain of about 929.60 points. Whereas Nifty closed at the level of 21182.70 points with a gain of 256.40 points. Apart from this, a total of 3,892 companies were traded in BSE today, out of which about 2,064 shares closed with gains and 1,702 shares closed with decline. There was no difference in the share prices of 126 companies. Today, 419 stocks have closed at their 52-week high.
Rupee falls 1 paise to close at all-time low of 83.40 against US dollarThe rupee depreciated 1 paise to hit an all-time closing low of 83.40 against the US dollar on Wednesday amid a strong American currency overseas. Sensex, Nifty end with marginal gains amid volatilityIn the highly volatile session, the benchmark indices ended on a flat note with above 20,900. At close, the Sensex was up 33.57 points or 0.05 percent at 69,584.60, and the Nifty was up 19.90 points or 0.10 percent at 20,926.30.
The condition of cotton spinning mills deteriorated due to many problems.Cotton textile exports have been sluggish for almost 18 months, cotton yarn exports have declined by 56 per cent year-on-year during April-September, Indian yarn is losing its competitive edge in global markets due to rising costs, power shortage Costs have increased, with import duty for fine yarn continuing at 11 per cent. Yarn Varieties Strong and flexible balance sheet promises hope in the year aheadThe troubles of the cotton textile industry, especially the spinning mills, are not likely to ease any time soon. On the contrary, the profitability of mills will continue to decline amid low demand and realizations on one hand and stable cotton prices on the other.According to the South India Mills Association, southern mills, which account for about 55 per cent of the spinning capacity in the country, have been facing a prolonged slowdown for almost 18 months.However, on an all-India basis, textile shipments declined marginally year-on-year (y-o-y) between April-October 2023. Within this, apparel exports declined by about 14-15 per cent during the period, raising concerns, especially as there was a strong surge in the year-ago period (October 2022 compared to 2021).What's more, India's cotton yarn exports were down 56 per cent during April-September compared to the same period in FY 2021-22. The reasons are both external and internal.Half of India's yarn exports (in terms of volume) are to China and Bangladesh. Gautam explains, “Due to the shutdown of the Chinese economy in FY2023 and lower cost competitiveness of Indian yarn in early FY2023 (as domestic cotton prices crossed international prices, making Indian yarn less competitive in the global market) Done), export volumes declined." Shahi, Director, CRISIL Ratings Ltd.Additionally, global demand for textiles has remained weak, especially from high-consumption economies such as the US, UK and EU. Another war in the Middle East following the Russia-Ukraine war has also complicated supply chains and affected capital spending, jobs and consumption across countries.India has been no exception. Job uncertainty along with inflation and high interest rates are partly why discretionary spending, including apparel, has declined over the past six months. Lower-than-expected growth in domestic demand for readymades during the recent festive season has raised concerns for mills.Note that the industry is pushing for removal of the 11 per cent import duty imposed on cotton and expensive man-made fibers and filament yarns, which is further worsening end-user textiles like dresses, apparel and made-ups. Expensive and less competitive in global markets.Other costs are also added to make cotton yarn expensive. Recently, SIMA reported that a steep increase in electricity tariffs has increased production costs. This is no surprise, given that electricity accounts for more than 40 percent of total manufacturing costs.In such difficult times, the decline in cotton production estimates for cotton season FY2024 is not good news. Initial estimates point to cotton production at around 310 lakh bales, down from last year's around 337 lakh bales. (A bale of cotton weighs 170 kg). This may prevent cotton prices from falling further, which, along with electricity and other costs, could keep yarn prices high.According to CRISIL, which analyzed around 88 yarn spinners, the operating profitability of cotton yarn spinners will fall by 250-350 basis points to a decade low of 7-8 per cent this financial year from 10-10.5 per cent last financial year. . (One basis point is one hundredth of one percentage point). Shrinking spread among cotton and yarn, inventory loss, weak downstream demand are the major reasons. “Revenue will also decline by 13-15 per cent due to lower receipts, even though volumes are expected to grow by 10-12 per cent this financial year on the low base of last financial year,” the report said.However, what is helping the spinners is their relatively strong interest cover ratio after shrinking their balance sheet over the last three years. Most companies have also cut capital expenditure. Yet, it is only a pick-up in demand in global markets, which is so important for India's textile exports, that will help lighten the grim scenario.
This evening, the rupee strengthened by 1 paise and closed at Rs 83.38 against the dollar.Today the Sensex fell by about 377.50 points and closed at the level of 69551.03 points. Whereas Nifty fell by 90.70 points and closed at the level of 20906.40 points.
'Import duty on cotton affects opportunities in textile sector'Mark Levkowitz, president and chief executive officer of Supima, said import duties on cotton in India have had an impact on shipments of Supima cotton to India. Mr Levkowitz, who was in Coimbatore on Monday to participate in the Cotton Day 2023 event organized by Cotton USA, said the duty is a disincentive for brands that want to buy products made from Supima cotton in India.The production of Suvin (Indian extra long staple cotton) is very low and there is nothing to be defended (in India) by imposing duty on extra long staple American cotton Supima. He said, this duty is snatching away opportunities for Indian textile mills.He said that globally there is a shortage in the availability of extra long staple cotton this year.US Cotton Trust Protocol and Supima have collaborated to provide supply chain traceability and access to farm-level, science-based data. In the first four months of launch, 17,000 tonnes of fiber details have been uploaded to the project, which is positive and encouraging, he said.
This evening, the rupee closed at Rs 83.39 against the dollar with a weakness of 1 paise.Today Sensex closed at 69928.53 points with a gain of 102.93 points. Whereas Nifty closed at the level of 20997.10 points with a gain of 27.70 points.
Rain a dampener for farmers as rate of cotton and soybean dip furtherMost of the supplies in the markets are of raindamaged cotton and soyabean. Falling below the fair average quality (FAQ), the damaged produce does not qualify for MSP procurement by government agencies, say traders.Till last week, rates of cotton, which had a high moisture content due to bouts of unseasonal rains, had gone down below the minimum support price (MSP) of ₹7,020 a quintal, even for long staple grade. Now, even the best grade cotton — with an acceptable level of moisture of up to 8% — is fetching a rate either below MSP or barely ₹20 to ₹30 above the level, say market sources.The rates for good long staple cotton are in the range of ₹7,000 to ₹7,050 a quintal. However, the majority of the cotton arriving in the market has been damaged by rains. This produce is not fetching more than ₹6,000 to ₹6,500 a quintal, say market sources.Vijay Nichal, a ginner and a cotton farmer at Mahalgaon in Yavatmal, says the market is flooded with discoloured cotton which has been damaged due to rains. The low temperature may prevent further boll formation, he says.The MSP for soyabean is ₹4,600 a quintal. However, the majority of the supplies in the markets are of a lower grade due to rains. The best quality soyabean is fetching ₹4,800 a quintal, but the market mainly has damaged soyabean, said a trader at the agriculture produce market committee (APMC) yard at Kalamana. However, at Wani soyabean is fetching around ₹5,500 a quintal but farmers are hardly left with any produce with them, a trader said.Tukaram Jadhav, a farmer from Ghatanji in Yavatmal, said he could harvest around 3 quintals of soyabean while the rest of the crop could not be salvaged. He is expecting to get around ₹4,700 a quintal for the produce. The cotton that he has will not get more than ₹6,500 a quintal, he says.Manish Shah, a cotton trader, said the rates of lint have come down to ₹25,000 a bale from ₹28,000. The international market is bearish too. The traders are demanding that the government should do away with the reverse charge mechanism (RCM) on cotton which may enable them to increase the prices for farmers.RCM is a tax payable on purchase of material under the GST regime. This is applicable on select items including cotton. Generally, GST is payable only on sale of commodities, but certain commodities are under RCM.
Cotton season begins, challenges for the sectorGujarat textile industry has been experiencing low demand for more than a year. The new cotton season has brought little hope as textile units are struggling to operate at full capacity. While spinning mills are running at 70% capacity, ginning units are running at only 40% capacity. The high price of Indian cotton in the international market is hindering the export business of the industry.“Demand in the international market is low, and Indian cotton is not competitive in terms of prices,” said Jayesh Patel, senior vice-president, Spinners Association Gujarat.Currently, yarn prices are around Rs 230 per kg, and spinning units face a price disparity of Rs 5-10 per kg. This problem has increased due to less arrival of raw cotton due to unseasonal rains in some states.Gujarat Chamber of Commerce and Industry (GCCI) secretary Apoorva Shah also expressed similar sentiments. “The cotton season, which usually peaks between October and February, has seen reduced activity due to lower cotton arrivals, falling prices and unseasonal rains. The state’s 900 ginning units are operating at a fraction of their normal capacity, running only one shift instead of the usual three during the peak season,” he said.“Unseasonal rains have further affected the quality of cotton. Cotton has more moisture. Ginning units are incurring losses of around Rs 1,000-1,500 per bale and are running at only 33% of their capacity,” said Shah.Cotton prices are around Rs 55,000 per candy. Experts believe that due to high minimum support price (MSP) and low arrivals, prices will remain in the same range. Last year, farmers were not ready to sell cotton at low rates and this year also the arrival is less. Gujarat gets around 10-15 lakh bales from Maharashtra for pressing as the state has seen a significant increase in spinning activities in the last decade. However, if demand does not improve soon, the textile sector, especially ginning and spinning units, may face huge challenges for the second consecutive year.
Cotton prices returned to one year old levelsMost believe the week's rally was based on new speculative longs entering the market, coupled with two rounds of short covering – first above 81.40 and then once above 82.40. Nevertheless, a review of open interest data cannot confirm the new position.It was noted that the Southeast base has decreased sharply over the past week, indicating good demand for that growth. Other developments have not seen the same strength. Furthermore, there has been no notable indication of sales in any quantity to China or any other major importer. Certainly, the weekly export sales report was a big disappointment. However, that report reflected week-old data.The market outperformed expectations and reestablished its year-old 74-88 cent trading range. Still, most think the absolute high will be 85 cents with the possibility of another test in the mid-70s. The five-cent range of 77-82 cents is projected to be the key trading range.The market retreated more than 100 points in Friday (Dec. 8) trading on the back of the USDA's December supply demand report as it estimated world ending stocks of about 900,000 bales to rise to 82.4 million. The major bearish tone in the report came in the form of a decline of 1.6 million bales in world consumption, which has now declined to 113.73 million bales. Large decreases in demand were recorded in China (1.0 million bales less), Turkey (400,000 bales less), and Mexico and the US (100,000 bales less each). Demand remains the major hurdle in increasing cotton prices.Furthermore, it is noted that the Chinese, U.S., Australian, Japanese, Indian and European economies are experiencing low levels of economic activity. It is believed that world consumption could fall further to 300,000 to 400,000 bales.World production also declined by 500,000 bales from 113.5 to 113 million bales. U.S. production declined by 300,000 bales to 12.8 million. Turkish production also declined by 300,000 bales to 3.2 million. Production in Pakistan increased from 200,000 bales to 6.7 million bales.Carryovers in major importing countries increased by 600,000 bales, while carryovers in major exporting countries saw an increase of 400,000 bales. These levels suggest that very intense price competition will continue to affect world cotton trade. The WASDE report, while reducing US carryovers to very significant levels, was seen as slightly bearish due to the availability of cotton supply chasing a declining demand market.Preliminary U.S. projected acreage estimates for 2024 range from 9.8 to 10.8 million acres. Certainly, growers with good yields in 2023 will plant a little more in 2024 or so, with total plantings expected to be between 10.1 and 10.3 million acres.Source: Cotton Growers
| title | Created At | Action |
|---|---|---|
| New cotton prices fall due to fewer buyers | 25-12-2023 19:18:25 | view |
| This evening, the rupee strengthened by 14 paise and closed at Rs 83.14 against the dollar. | 22-12-2023 23:29:01 | view |
| Cotton supply estimated at 345 lakh bales | 22-12-2023 18:30:35 | view |
| CCI purchased 9 lakh bales. | 22-12-2023 17:54:45 | view |
| This evening, the rupee closed at Rs 83.28 with a weakness of 11 paise against the dollar. | 22-12-2023 00:30:03 | view |
| Today where the Sensex closed with a fall of around 930 points. | 20-12-2023 23:35:09 | view |
| Major events in the international cotton market in 2023 | 20-12-2023 22:20:14 | view |
| The rupee closed at Rs 83.18 this evening with a weakness of 12 paise against the dollar. | 19-12-2023 23:39:42 | view |
| This evening, the rupee closed at Rs 83.06 with a weakness of 6 paise against the dollar. | 18-12-2023 23:35:52 | view |
| Collaborative government-private approach needed to increase awareness of PBW pest & solutions available to prevent crop damage in cotton | 16-12-2023 00:23:30 | view |
| This evening, the rupee strengthened by 33 paise and closed at Rs 83.00 against the dollar. | 15-12-2023 23:28:44 | view |
| This evening, the rupee strengthened by 7 paise and closed at Rs 83.33 against the dollar. | 15-12-2023 00:27:32 | view |
| Rupee falls 1 paise to close at all-time low of 83.40 against US dollar | 13-12-2023 23:43:39 | view |
| The condition of cotton spinning mills deteriorated due to many problems. | 13-12-2023 20:27:50 | view |
| This evening, the rupee strengthened by 1 paise and closed at Rs 83.38 against the dollar. | 12-12-2023 23:27:34 | view |
| 'Import duty on cotton affects opportunities in textile sector' | 12-12-2023 19:23:53 | view |
| This evening, the rupee closed at Rs 83.39 against the dollar with a weakness of 1 paise. | 11-12-2023 23:27:25 | view |
| Rain a dampener for farmers as rate of cotton and soybean dip further | 11-12-2023 18:55:12 | view |
| Cotton season begins, challenges for the sector | 11-12-2023 18:23:03 | view |
| Cotton prices returned to one year old levels | 09-12-2023 18:17:55 | view |
