Rates remain range-bound amid moderate trading on cotton market

Prices were firm amid moderate trading on the cotton market on Thursday, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6,400, they said. In the ready business nearly 7,000 bales of cotton changed between Rs 6200-6700, they said.
The seedcotton in Sindh was unchanged at Rs 2600-2700 and rates in Punjab were at Rs 2600-2900, they added. Market sources said that some mills made buying to cover the short demand, but it looks that they are cautious and hopping for fall in the rates as supply position eased.
They said that the spinners are busy in forward buying to cover the export obligations. Commenting on the damage to crop, analysts said that 80-85 percent of standing crop is damaged in Badin and some other of parts of cotton growing areas in Sindh. So, the spinners may be considering to import cotton but they are not able to finalise any things due to sharp fluctuations in the world cotton market, they said. On Thursday the US cotton futures settled up their daily limit on investor buying on bullish technicals and analysts said a more stable economic environment should nudge fiber higher this week.
Oil prices were firmer and gold prices steady after a two-day rally as the steadier tone of outside commodity markets gave some support to cotton. The key December cotton contract on ICE Futures US rose the four-cent limit or nearly four percent to finish at $1.0785 per lb, with the session low at $1.0288. Total volume traded hit over 18,100 lots, almost a third above the 30-day norm, Reuters data said. Total volume traded on Tuesday hit 7,113 lots, the lowest level of business since May 23, ICE data showed.
The following deals reported: 600 bales of cotton from Hyderabad sold at Rs 6250-6300, 1000 bales of cotton from Shahdad Pur sold at Rs 6250-6300, 1000 bales of cotton from Tando Adam at Rs 6250-6300, 600 bales from Sanghar at Rs 6300, 1000 bales from Mir Pur Khas at Rs 6300, 200 bales from Khipro at Rs 6200, 200 bales from Kot Ghulam Mohammad at Rs 6250, 200 bales from Khan Bela at Rs 6700, 200 bales from Noor Pur at Rs 6700, 400 bales from Vehari at Rs 6650, 600 bales from Rahim Yar Khan at Rs 6500-6650, 200 bales from Hasil Pur at Rs 6650, 200 bales from Mian Chunnun at Rs 6650, 200 bales from Kahror Pacca at Rs 6600, 400 bales from Sahiwal at Rs 6600, 200 bales from Sadiqabad at Rs 6600, 200 bales from Mian Wali at Rs 6600, 200 bales from Khan Pur at Rs 6500 and 200 bales from Pir Mahal at Rs 6500.