Indian cotton values soared once again on Tuesday as yarn mills rushed to procure, amid expectations that cotton spot rates could climb further.
The benchmark Gujarat Shankar-6 traded at Rs38,350 per candy on Friday – Rs1,000, or 2.7% higher than last weekend. In Maharashtra, quotations for A-grade cotton high micronaire also jumped to Rs39,350 per candy on 7 June.
The recent rallies in cotton prices owe much to the tight supply and robust demand from Pakistan, Bangladesh and Vietnam. The restocking of local spinners boosted the upward trend. In addition, the firmer cotton price in China helped the bullish business sentiments, too.
Global analysts predict the current market trend could continue in the short-term. However, the firmness in cotton prices hurt yarn shipments, casting a long shadow on the health of the cotton textile sector.