Cotton arrivals still lower than last year

Cotton prices fell by Rs 500 a candy of 356 kg as arrivals rose on Monday. However, compared with last year, arrivals are still 60 per cent lower as rain delayed the cotton season by a month.

Best-quality Sankar-6 variety decreased by Rs 500 to Rs 38,000-39,500 a candy while lower and medium qualities sold at Rs 34,000-38,000 a candy.

Kapas or raw cotton dropped by Rs 10-15 for a maund of 20 kg to Rs 920-950. Kapas for February delivery declined by Rs 10.20 to Rs 732 for a maund of 20 kg, with an open interest of 146 lots.

While 20,000-25,000 bales of 170 kg arrived in Gujarat, 60,000-65,000 bales arrived in rest of the country. The Kalyan variety fetched Rs 24,000-25,000 a candy.

Mills have reduced buying in the last two days even as quality cotton has started arriving, said Mr Arvind Raichura of Balkrishna Ginning.

Cotton will fall more this week because of higher supplies and a weaker global market, said Rajkot-based broker Mr Jatinbhai.