02122016Fri
Last update: Fri, 12 Feb 2016 09pm

Cotton and Textiles

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A firm trend was seen on the cotton market on Thursday in the process of moderate business activity, dealers said. The official spot rate was unchanged at Rs 5,350, dealers said. In Sindh, prices of seed cotton low type was lower by Rs 200 to Rs 1600 and Rs 2800, in the Punjab, rates were down by Rs 50 to Rs 2000 and Rs 3000, they said. In the ready business, around 7,000 bales of cotton changed hands between Rs 47750 and Rs 5650, they said.
In the backdrop of easier cotton prices and bearish macroeconomic signals internationally, cotton prices in the domestic market were soft and remained on the subdued side on Thursday. Just like the American, Chinese and Indian cotton prices have slid towards the weak side, Pakistani lint prices have also declined.
Cotton futures edged higher on Wednesday, recovering from one-year lows hit a day earlier as investors covered bearish bets after five straight sessions of losses, even as concerns mounted about growing excess inventories. Prices touched their lowest since late January last year after the US Department of Agriculture warned of bigger global stocks amid lower demand. "You had a bunch of shorts get in and longs get out at the same time and now that's over with," Lou Barbera of ICAP Cotton said, referring to the previous day's losses.
The following were the fluctuations observed during the day:

The textile industry has rejected the support package for industrial consumers by the Ministry of Water and Power, saying the government added Rs 3.63 per kilowatt hour surcharges then adjusting the announced Rs 3 per kilowatt hour reduction in the industrial tariff with the Fuel Price Adjustment.
Lack of buying interest seen on the cotton market on Wednesday as most of participants were on the sidelines in the absence of motivating factors, dealers said. The official spot rate was unchanged at Rs 5,350, dealers said. In Sindh, prices of seed cotton low type was lower by Rs 200 to Rs 1600 and Rs 2800, in the Punjab, rates were down by Rs 50 to Rs 2000 and Rs 3000, they said. In the ready business, around 3,000 bales of cotton changed hands between Rs 4800 and Rs 5625, they said.
Cotton futures sank to the lowest in over a year on Monday after the US government raised its forecast for excess inventories both in the United States, the world's top exporter, and globally, amid lower demand. The US Department of Agriculture (USDA) raised its outlook for world stocks in the year that runs through July, as well as its outlook for carryover stocks in the United States on a lower forecast for shipments abroad in 2015-16.