According to data collected from various sources, the highs witnessed in the commodity's prices during mid-November was unsustainable towards the end of the year. Moreover, international prices too registered a decline. The New York March futures was hovering around 60 cents against the high of 65.33 cents two weeks earlier. The May futures settlement price ended at 61.57 cents compared with 67.24 cents two weeks back.

Back in the domestic market too, the prices witnessed marginal fall, though the prices of DCH-32 (used for higher count spinning) remained firm. Cotton lint prices of J-34 was down at around Rs 18,000 a candy spot when the new year began against a high of Rs 18,600 registered towards November end.

However, the prices are still higher compared to previous year around this period. LRA prices were lower at Rs 18,900 a candy spot compared to Rs 20,000 a candy it commanded on November 29. Similarly S-6 fell to Rs 22,000 (Rs 23,200 during November end) and H-4 was marginally lower at Rs 21,000 (Rs 21,600 mid-November). According to textile mill sources, the mills have adopted a wait-and-watch policy following the flare-up in cotton prices during November. Most of the mills here have also started reporting a slowdown in cotton yarn movement, following resistance to higher price levels from user segments.

Meanwhile, the daily arrivals of cotton for the 2000-'01 season continues to remain high. According to data available, around 78.25 lakh bales (of 170 kg each) arrivals have been reported in various markets up to the first weekend of January. This is against 65.43 lakh bales (170 kg each) arrivals reported during the corresponding period last year.