Cotton may fall to Rs 36,000 a candy

Limited export demand and weak local demand pulled down cotton on Monday. Prices may dip to Rs 36,000-36,200 a candy of 356 kg by the end of this month, Mr Mayurbhai, a Rajkot-based said.

The Sankar-6 variety fell by Rs 500 to Rs 37,200-37,500 a candy. The cash crop has declined by almost Rs 1,000 a candy in the past two trading days. It was down to Rs 3,485-3,495 for 40 kg in Punjab and Haryana.

Spot

kapas or raw cotton declined by Rs 20-25 to Rs 890-925 for a maund of 20 kg. Maharashtra kapas traded at Rs 920-935 for a maund . from Maharshtra, 150-200 trucks arrived in Gujarat.

While 30,000-35,000 bales of 170 kg each arrived in Gujarat, around a lakh bales arrived in rest of the country.

The Cotton Advisory Board revised higher its estimates of 2011-12 production by a lakh bales to 35.6 million. According to the International Cotton Advisory Committee's report, global cotton (lint) production is expected to rise by 8 per cent to 26.9 million tonnes in 2011-12, the largest crop since 2004-05. The global utilisation by textile mills is expected to increase to the extent of 2 per cent or about 25 million tonnes.

Lukewarm demand from textile mills and exporters has dragged cotton down, traders and brokers said.