Cotton prices firm on moderate trade
Rates maintained firm a posture on the cotton market on Tuesday in the process of moderate trade activity, dealers said.
The official spot rate was unchanged at Rs 8,600, they added. In the ready session, over 6000 bales of cotton changed hands between Rs 8000-8800, they said. Prices of seed cotton in Sindh were at Rs 3000-3500, in Punjab seed cotton prices at Rs 3000-3600 and in Balochistan prices were at Rs 3200-3500, they said.
Market sources said the mills and spinners trying to lay hands over the fine type of cotton to replenish their stock.
The other leading factor is dollar’s increase versus the rupee is also propelling buyers to purchase as much as they can. Recovery in cotton yarn demand is a positive demand and this factor may help in reviving the business activity in the cotton market, they said.
Cotton analyst Naseem Usman said that stable trend in the international markets giving an impression that prices to depict firmness in the coming days.
Adds Reuters: ICE cotton futures rose over 1 percent on Monday as an improved technical picture and hopes of a positive outcome from US-China trade talks, pushed speculators to cover their short positions.
The front-month cotton contract on ICE Futures US, settled up 1.15 cent, or 1.50 percent, at 77.73 cents per lb.
It traded within a range of 76.17 and 77.77 cents a lb.
Total futures market volume rose by 248 to 33,567 lots. Data showed total open interest gained 1,729 to 225,036 contracts in the previous session.
The following deals reported: 1600 bales of cotton from Sadiqabad at Rs 8750/8800, 400 bales from Burewala at Rs 8600, 1600 bales from Dera Ghazi Khan at Rs 8600, 200 bales from Jahania at Rs 8400 and 1700 bales from Khanewal at Rs 8000, they said.