Mills make deals at cheaper prices due to better-than-expected cotton crop

Mills were active to cover position at the declining rates as ginners were unwillingly prepared to sell at the lower rates due to good cotton arrivals, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6,800, they said.
Seedcotton rates in Sindh were higher by Rs 100 to Rs 2900-3000, prices were inert in Punjab at Rs 2600-3000, they said. In the ready business trading activity picked up as some 4,600 bales of cotton changed hands between 6,800-7000, dealers added.
Some brokers said that positive trend in the phutti arrivals pushed the prices lower during the last sessions but now it looks that upward trend in the NY cotton may help the prices to stabilise in the near future. On the other hand some other dealers were of the view that news about the India's intention to export cotton might be a factor, which can drift down the prices. Besides, rains in Punjab are continuing and it is also expected that Sindh may receive rains in the near future could be reasons behind the stability in the prices, other experts said
On Friday the cotton futures finished marginally higher on buying by small investors as players adjusted positions while waiting for a government crop report due out next week, brokers said. The key December cotton futures on ICE Futures US rose 0.36 cent to settle at $1.1388 per lb, dealing from $1.1313 to $1.16.
Volume traded stood around 8,300 lots at 2:43 pm EDT (1843 GMT), some 60 percent below the 30-day norm, Thomson Reuters preliminary data showed. "The specs are waiting for a signal, any signal," said Mike Stevens, an independent analyst in Louisiana. That signal may well come from the monthly supply/demand report of the US Agriculture Department, which is due out next Tuesday, and the USDA's weekly crop progress report being released on Monday.
The following deals were reported: 400 bales of cotton from Hyderabad sold at Rs 6800, 200 bales of cotton from Matiyari at Rs 6800, 200 bales from Mongi Bangla at Rs 7000, 200 bales from Arifwala at Rs 6900, 400 bales from Khanewal at Rs 7000, 600 bales from Chichawatni sold at Rs 6900-7000, 1000 bales from Pak Pattan at Rs 7000, 1000 bales from Burewala sold at Rs 6900-7000, 400 bales from Mian Channu at Rs 6900/7000 and 200 bales from Dunia Pur at Rs 6900.