Cotton drops Rs 600 a candy in 2 days as demand falls

Cotton was down Rs 200-300 a candy of 356 kg on Monday, as demand fell. Increasing arrivals may put further pressure on prices this week.

The Sankar-6 variety declined by Rs 200-300 to Rs 33,800-33,900 a candy. The V-797 variety was offered at Rs 30,000-30,500 a candy. Prices have dropped by almost Rs 600 a candy in past couple of days, as buying by mills was limited and export demand is weak.

About 34,000 bales of 170 kg each arrived in Gujarat, while 1.48 lakh bales arrived in the rest of the country.

During the last week, 29,000-30,000 bales arrived daily;.

Kapas or raw cotton declined here by Rs 5 to Rs 800-875 for a maund of 20 kg, while it traded at Rs 870-890 a maund for delivery at Kadi.

In North India,low demand and higher supplies pulled down prices; 27,000 bales arrived. New cotton for ready delivery quoted at Rs 3,480-3,490 a quintal in Punjab, at Rs 3,485-3,505 in Haryana and at Rs 3,520-3,525 in Rajasthan.

Traders said that buyers were unwilling to buy at the higher price despite demand from yarn industry rising.