Cotton spot prices are expected to break the prolonged-bearish price trend in Northern markets where the arrival of fresh cotton is set to be delayed due to recent rains in Punjab, Haryana and Rajasthan. Arrival of fresh crop is expected to be delayed due to rain that has drenched the North-Eastern States.

Arrival of raw cotton has begun in the last week in markets in Southern Haryana, signaling onset of fresh cotton season in North. The cotton arrival peaks by end of September in North, almost two-ahead of other zones in India, as harvesting scales in Punjab, Haryana and Rajasthan. Around 12-15 per cent cotton is produced in the Northern States.

Cotton prices have come down by 8 per cent since April this year. The spot prices that stood at Rs. 4,800 per quintal come down to Rs. 4,500 -4,300 per quintal in the last week of August. The prices are expected to strengthen but will remain below Rs. 5,000 per quintal, most traders maintain.