Lean business on cotton market
Slow trading was again witnessed on the cotton market on Tuesday ahead of May Day holiday, dealers said. The official spot rate was inert at Rs 6,600, they said. Rates of seed cotton in both Sindh and Punjab were at Rs 1,600 and Rs 2,300, they said. In the ready business, nearly 2,000 bales of cotton changed hands between Rs 6,300-6,600, they said.
Copyright Business Recorder, 2013
Market sources said that no change was seen in the present outlook on the cotton market because mills and spinners were facing liquidity crunch. They said picture would be clear after the May 11 general election, better outcome might help in improving the business atmosphere in the country, they added. According to the Reuters, the NY cotton futures gained for a third straight session, as a speculator sell-off slowed in the face of rising financial and grains markets and on concerns over weather-related planting delays in the United States, the top exporter, dealers said.
The most-active July cotton contract on ICE Futures US gained 1.49 cents, or 1.8 percent, to settle at 85.74 cents per pound, posting its largest daily gain since mid-March. Global financial markets rose as the formation of a new government in Italy eased concern over euro zone stability. The Thomson Reuters-Jefferies CRB index, a benchmark for global commodities, continued to climb up from recent lows touched during a sell-off earlier this month.
The following deals reported: 100 bales of cotton from Faqir Wali sold at Rs 6,300, same figure from Jalal Pur at Rs 6,350, 200 bales from Jahanaian at the same rate, 200 bales of cotton from Bahawalpur at Rs 6,400, 400 bales of cotton from Fort Abbas at Rs 5,450, 200 bales from Yazman Mandi at Rs 6,600 and 400 bales from Sadiqbad at the same rate, they said.