Last update: Sat, 06 Feb 2016 07am

Volume of business slips ahead of PCGA report

Most of the leading buyers kept on the sidelines on the cotton market on Thursday ahead of Pakistan Cotton Ginners Association (PCGA) report and after fresh decline in the NY futures, dealers added. The official spot rate was unchanged at Rs 4,950, they said. In the ready session, over 7,000 bales of cotton changed hands between Rs 3900-5200, they said.

In Sindh, prices of seed cotton were unchanged at Rs 1800 and Rs 2500, in Punjab prices were at Rs 2000 and Rs 2900, they said. According to the market sources, lack of buying interest seen on the cotton market as buyers were hoping fall in the present rates after the PCGA fortnightly data due shortly. Cotton analyst, Naseem Usman said that profit-taking was witnessed in the overseas market, causing a fall globally and propelled mills and spinners to adopt wait-and-see attitude. Besides, ginners were not keen to sell quality cotton at present levels, expecting prices will improve in times to come, he added.

Reuters adds: Cotton futures had their biggest single-session decline in seven weeks on Wednesday, weighed on by falling crude oil prices and by US government data showing speculators had reduced their net cotton short position more than expected. The most-active March cotton contract on ICE Futures US fell 1.71 cent, or 2.8 percent, to settle at 60.27 cents a lb in its last day of trading of 2014, up a touch from the two-week low it had hit in late-day trading. The front-month finished 2014 down 28.8 percent, its biggest annual loss in three years, as a government policy change in top consumer China weakened demand, while farmers in key producers boosted acreage. Cotton trading on ICE will be closed on Thursday for the New Year's Day holiday and is scheduled to reopen late on Friday.

The following deals reported: 400 bales from Sanghar at Rs 3900-4000, 600 bales from Vehari at Rs 4600-4650, same figure from Hasilpur at Rs 4975, 600 bales from Bahawalpur at Rs 5000, 1000 bales from Ahmedpur at Rs 5000-5100, 600 bales from Faqirwali at Rs 5025-5050, 400 bales from Layyah at Rs 5100, 1000 bales from Haroonabad at Rs 5100-5150, 400 bales from Uch Sharif at Rs 5200 and 600 bales from Yazman Mandi and 800 bales from Mianwali done at Rs 5200, they said.

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