According to a leading speculator, the cotton futures fell to Rs 364.10 per maund, a new contract low. Spot cotton was quoted at Rs 350-352 per maund. A crucial meeting is going to held soon, in which the futures committee may decide to terminate futures, as prices are hovering near the cap of Rs 363. Trading has been already halted due to disparity in prices. The committee, had decided price limits of Rs 50 from the benchmark price of Rs 413, the cap was set at Rs 463, while floor was set at Rs 363 per maund. All the open positions deemed to be squared off at these prices, irrespective of prevailing spot prices. Though last date of the future is April 30, 1999, it is useless to continue it, as spot price is much lower than the cap, said a trader.

In spot prices, lower quality andsupply glut has aggravated the bear spell. Lack of buying by Cotton Corporation of India (CCI) and other nodal agencies have added the woes of the farmers. Market yards were flooded with cotton.According to a leading broker, quality variations are very high in the long staple cotton, Sanker. Traders are quoting prices for five grade, that is A,B,C,D and E. Usually it has to be A,B and C. In the short staple quality remained relatively better.

Meanwhile price fell sharply in the spot market. In the short staple cotton V 797 ruled at Rs 12,600-12,800, Vagad Rs 12,000-12,200, Co 2 Rs 15,500-15,700 per bales. In the long staple A grade Sanker ruled relatively stable at Rs 19,700-20,700 while all other variety were down. Sanker B ruled at Rs 19,000-19,500, C at Rs 18,300-18,500, D at Rs 17,800-18,000 and E at Rs 16,000-16,500 per bales, said a trader.

As far as supply and demand is concerned, out of estimated crop of 163 lakh bales, 129.25 bales have arrived, and 24.85 lakh bales remained unsold. East IndiaCotton Association (EICA) has estimated total stock of 200.50, comprising opening stock at 30 lakh bales, crop of 165.50 and import at five lakh bales respectively. While Cotton Advisory Board (CAB) has estimated total stock of 185.86 lakh bales. It has estimated the opening stock to be at 24.13 lakh, crop at 156.73 lakh, and import at 5 lakh bales.

According to EICA total cotton consumption will be around 161.50 and carry over stock as on April 1, will remain at 39 lakh bales. CAB's figures for the same are 158 and 40 respectively. An independent firm has put figures at 161.50 and 24.36 bales respectively.