Cotton hold-up as arrivals dip, prices steady.

Cotton market activity has slowed down as ginners hold onto their produce, unwilling to sell at lower prices. Prices had been dropping but are now stabilizing. Arrivals have nearly halved compared to last month, falling below 50,000 bales daily. Ginners are waiting for better prices, while buyers are hesitant to purchase at current levels. Industry experts believe prices won't fall further due to limited supply.

A slight increase in ICE futures contracts has prompted some multinational companies in India to raise their selling prices. The Cotton Corporation of India (CCI) also recently sold some bales to mills.

Analysts say prices are likely to hold steady or even increase in the coming days due to several factors. Low arrivals and potentially rising futures prices are creating a wait-and-see situation for both ginners and buyers. Additionally, weak yarn demand is keeping mill purchases slow.

The recent volatility in cotton prices is attributed to speculation rather than fundamental market changes. With a tight cotton supply in India, demand exceeding daily arrivals, and potential for a stable to firm long-term trend, analysts predict a positive outlook for the cotton market.