Higher prices decline business on cotton market
Higher prices propelled mills to keep away from making new deals on the cotton market on Wednesday in the process of trading activity, dealers said.
The official spot rate was unchanged at Rs 8700, they added. In ready session, about 14,000 bales of cotton changed hands between Rs 7800 and Rs 8900, they said. Rates of seed cotton per 40kg in Sindh were at Rs 3600-4150 and in the Punjab prices were at Rs 3700-4200, they said. In Balochistan, cotton prices were at Rs 8300-8500, seed cotton prices were at Rs 4200-4700, they said.
In Sindh, Binola prices per maund were at Rs 1300-1500 and in Punjab rates were at Rs 1450-1600, they said and adding that polyester fibre per kg rate shed modestly at Rs 187.
Market sources said that most of the mills were on the sidelines due to higher rates. The ginners were trying to make profits amid reports of short supply position, they said and adding that fresh rains in Punjab likely to damage cotton production, which will definitely create a problem for cotton traders or businessmen.
Cotton analyst, Naseem Usman said that cotton output is not achieving desired target due to country’s unfavourable weather condition.
Adds Reuters: ICE cotton futures settled higher on Tuesday, after earlier slipping over 1% as improved harvest for the US crop added to higher output expectations, with markets cautiously awaiting the trade talks between US and China next week.
Cotton contract for December settled up 0.25% at 60.98 cents per lb.
Prices had earlier declined over 1% to a session low of 60.20 cents per lb.
Total futures market volume rose by 350 to 21,575 lots. Data showed total open interest fell 390 to 235,087 contracts in the previous session.
The following deals reported: 2200 bales from Hyderabad at Rs 7850-8800, 400 bales from Kotri at Rs 7800, 400 bales from Nawabshah at Rs 8150, 400 bales from Sanghar at Rs 7850, 1000 bales from Nawabshah at Rs 8225, 800 bales from Sakrand at Rs 8450, 200 bales from Buchari at Rs 8225, 200 bales from Kandario at Rs 8750, 800 bales from Salah Pat at Rs 8750/8800, 400 bales from Mianwali at Rs 8900, 1200 bales from Fazalpur at Rs 8850, 600 bales from Fort Abbas, 400 bales from Taunsa Sharif, 1000 bales from Rajanpur all done at the same rates, 1200 bales from Haroonabad at Rs 8800/8850, 400 bales from Bahawal Nagar at Rs 8800, 1000 bales from Layyah at Rs 8750/880, 400 bales from Chichawatni at Rs 8650, 400 bales from Yazman Mandi at Rs 8800 and 800 bales from Ghaziabad at Rs 8600, they said.