Cotton market: prices move cautiously, may come down
No major difference in the rate of foreign cotton with improved quality propelled the local buyers to give up purchasing of domestic stuff, this factor may bring down prices in the coming days, dealers said on the cotton market on Wednesday.
Copyright Business Recorder, 2012
Official spot rate maintained overnight level at Rs 5,850, they said. In the ready business, over, 22,000 bales of cotton changed hands between Rs 5600-6200, they said. Prices of low variety of seeds cotton in Sindh was higher by Rs 100 to Rs 2600, however, rates of fine type shed the same amount to Rs 2750, seeds cotton prices in the Punjab were unchanged at Rs 2600-2950, they said.
Cotton analyst Naseem Usman said that today trading activity came down as buyers were preferring to import of foreign cotton mainly because of cheaper rates and better quality, this is factor, which likely to force mills to cut down rates, other brokers said.
According to the Reuters, the US cotton futures closed lower on Tuesday, erasing earlier gains, as fibre prices hit technical selling after piercing a nine-day moving average. The most-active December cotton contract on ICE Futures US settled at 70.10 cents per lb, down 0.30 cent or 0.40 percent. Prices were in a narrow range of just over 1 cent for a fourth straight session, with little fundamental news to move the market in either direction. Prices bucked a broadly stronger commodities market fuelled by a rally in oil and gold.
Following deals report: 1000 bales from Shahdadpur at Rs 5800/5900, 1000 bales from Tando Adam at Rs 5900-6000, 1000 bales from Sanghar at Rs 5800-5900, 800 bales from Mir Pur Khas at Rs 5675-5850, 2000 bales from Khairpur at Rs 6100-6200, 1200 bales from Upper Sindh at Rs 6100, 1000 bales from Hasilpur at Rs 5800-5950, 200 bales from Pir Mahal at Rs 5800, 400 bales from Pul Bagar at Rs 5950, 1200 bales from Bahawalpur at Rs 5900-6100, 800 bales from Burewala at Rs 6000, 400 bales from Multan at Rs 6000, 200 bales from Layyah at Rs 6000, 1000 bales from Sadiqabad at Rs 6000, 600 bales from Bahawal Nagar at Rs 6000, 400 bales from Chistian at Rs 6000, 1800 bales from Haroonabad at Rs 6000-6100, 1400 bales from Faqirwali at Rs 6000, 1400 bales from Lodhran at Rs 6000-6100, 800 bales from Yazman Mandi at Rs 6000, 400 bales from Vehari at Rs 6050, 400 bales from Tonsa Sharif at Rs 6100, 800 bales from Alipur at Rs 6100, 400 bales from Khichi Wala at Rs 6100, 1000 bales from Fazilpur at Rs 6100 and 600 bales from Mianwali at Rs 6200, they said.