Business activity improves on cotton market
Business activity improved on the cotton market on Thursday as declining rates attracted mills and spinners, dealers said. The official spot rate was unchanged at Rs8900, they added. In ready session, about 16,000 bales of cotton changed hands between Rs8000-9000, they said.
Rates of seed cotton per 40kg in Sindh were at Rs2600-4300 and in the Punjab prices were at Rs3500-4400, they said. In Balochistan, seed cotton prices were at Rs3500-4300, they added.
In Sindh, Binola prices per maund were at Rs1400-1700, in Punjab and Balochistan rates were at Rs1500-1600, they said and adding that polyester fibre was available at Rs179 per kg.
According to the market sources, some leading mills were active buyers to replenish their stock. The ginners indulged in selling of low quality cotton, in the meantime, some of them cut down asking prices amid rising fears of more decline in rates.
Cotton analyst, Naseem Usman said that cotton prices may fall in the coming days because the mills were not willing to pay above their psychological levels. Furthermore, the Karachi Cotton Association (KCA), Chairman Khawaja Mohammad Zubair, while in meeting with the members of Cotton Advisory Committee of the KCA, urged the government to take necessary measures on urgent basis to increase cotton production next season.
Because, despite falling trend in cotton production, the government is not looking serious in providing basic facilities to the growers and farmers, he added. The government would have to adopt practical steps against supply of substandard cotton seeds, pesticides and other inputs, he said.
ICE cotton futures rose more than 1% on Wednesday after falling for four straight sessions on technical buying, while report suggesting progress on the US-China trade talks rekindled some optimism for a breakthrough. Cotton contracts for March rose 0.80 cent, 1.25%, to 64.85 cents per lb by 02:19 p.m. ET.
Total futures market volume fell by 8,679 to 24,555 lots. Data showed total open interest fell 267 to 196,723 contracts in the previous session.
The following deals reported: 2400 bales of cotton from Ghotki at Rs 8900, 1500 bales from Panu Aqil at Rs 8900, 3000 bales from Mirpur Mathelo at Rs 8900, 1000 bales from Sadiqabad at Rs 8900/9000, 600 bales from Rahim Yar Khan at Rs 8000/9000, 1400 bales from Khanpur at Rs 8850, 800 bales from Marrot at Rs 8450/8500, 1000 bales from Fort Abbas at Rs 8425, 400 bales from Faqeerwali at Rs 8200, 1000 bales from Hasilpur at Rs 8000/8100, 1400 bales from Haroonabad at Rs 8000/8100, 1000 bales from Bahawal Nagar at Rs 8000, 400 bales from Tamewali at Rs 8000 and 400 bales from Mianwali at Rs 8000, they said.