Cotton market: millers, spinners keen on buying fine quality
Volume of business showed modest improvement on the cotton market on Tuesday as millers and spinners tried to lay hand over the small quantity of fine quality, dealers said. The official spot rate maintained last level at Rs 6,700, they added. In the ready session, around 4000 bales of cotton finalised between Rs 5000 and 6900, dealers said. Market sources said that less stock of fine type caused increase demand by the millers and spinners.
Copyright Business Recorder, 2014
Cotton analyst, Naseem Usman said that in the world market prices depict firmness mainly because of short supply.
Reuters adds: The US cotton futures hit one-month lows on Monday after a bearish government crop report from last week brought more pressure onto a market trader said could be set for a deeper correction. The most-active July cotton contract on ICE Futures US fell to an April 11 low of 90.50 cents a lb before settling at 91.30 cents, down 1.06 cents or 1.1 percent.
The contract has lost almost 2 percent of its value over the last two sessions after the release of the US Department of Agriculture's preliminary cotton report for 2014/15, which forecast higher output, lower demand and rising inventories. The following deals reported: 200 bales of cotton from Sanghar at Rs 5000, 800 bales from Pano Aqil at Rs 5125, 400 bales from Mir Pur Mathelo at Rs 6400, 200 bales from Salehpat at Rs 6575, 200 bales from Fort Abbas at Rs 6400, 628 bales of cotton from Burewala at Rs 6425, 100 bales from Lodhran at Rs 6475, 400 bales from Rahim Yar Khan at Rs 6800 and 600 bales from Khan Pur at Rs 6900, dealers said.