Cotton prices rise after last week's fall

The fall in cotton prices last week was short-lived after the cotton advisory board (CAB) reduced the crop estimates for cotton. The CAB, the apex trade body, reduced its estimates for cotton crop in the current cotton year (October-September) by five per cent to 31.2 million bales (1 bale is 170 kg).

Cotton prices for the benchmark Shankar-6 variety moved up 7 per cent to Rs 59,000 a candy in the last two days, from Rs 55,000 a candy on Saturday.

Cotton futures on the Nation Commodity & Derivatives Exchange has moved up over five per cent in the last two days on lower crop estimates.

Cotton prices had reached Rs 63,000 a candy, but eased later when the government refused to increase the export limit, which was earlier set at 5.5 million bales.

The CAB has pegged mill consumption this year at 23.2 million bales compared to 20.7 million bales last year.