Prices fall on strong phutti arrivals
Declining trend was witnessed on the cotton market on Friday as mills were not so much interested in the fresh buying in expectations of fall in rates, dealers said. "The official spot rate was down by Rs 100 to Rs 6,600. In the ready business, nearly 9,000 bales of cotton changed hands between Rs 6650-6750. Prices of seed cotton per 40 kg in Sindh and Punjab were at Rs 3100-3150," they said.
Copyright Business Recorder, 2013
Market sources said that fast arrivals of seed cotton pushed the prices down as rains stopped in lower Sindh and some other parts of country. "We are still waiting for the monsoon rains because lower Sindh received very little rains," they said, adding nearly 20,000 bales of old stock of cotton lying with the ginneries due to low variety. Explaining the present condition in the market, cotton analyst, Naseem Usman said lack of interest caused slide in prices and arrivals rise, adding that factor likely bring down rates in days to come.
According to the Reuters, the ICE cotton future rose on Thursday for the first time in three sessions and posted their biggest gains since early July as a pickup in mill demand sparked trade short-covering, dealers said. The most-active December cotton contract on ICE Futures US rose 1.18 cent, or 1.4 percent, to settle at 84.85 cents a lb. Limited mill business and trade short-covering in light volume spurred fiber's climb. Trading volumes were light at about 15,000 lots, compared with a 30-day average of 24,000 lots, preliminary Thomson Reuters data showed.
The following deals were reported as: 2,000 bales of cotton from Mir Pur Khas at Rs 6650-6700, 1,400 bales from Shahdad Pur at Rs 6650-6700, 2,000 bales of cotton from Sanghar at Rs 6675-6700, 2,000 bales from Tando Adam at Rs 6675-6700, 200 bales from Jhang at Rs 6675, 400 bales from Chichawatni at Rs 6690-6700, 200 bales from Vehari at Rs 6700, 200 bales from Pir Mahal at Rs 6700, 200 bales from Haroonabad at Rs 6700, 200 bales from Samandari at Rs 6700, 200 bales from Kabbir Wala at Rs 6700, 200 bales from Arif Wala at Rs 6700, 100 bales from Gaggo Mandi at Rs 6700, 200 bales from Burewala at Rs 6750, they added.