Cotton Market: Prices Lower On Slow Trade
Prices failed to sustain overnight gains in process of slow trading, dealers said. The official spot rate gave up overnight gains, shedding Rs 50 to Rs 5,350, dealers said. In Sindh, seed cotton prices were higher by Rs 100 to Rs 1800 and Rs 3000 and in the Punjab, rates were at Rs 2200 and Rs 3200, they said.
In the ready business, around 3000 bales of cotton changed hands between Rs 5250 and Rs 5650, they said. Commenting on the lacklustre condition in the market, some said that the mills stopped buying of cotton for the time being. Cotton analyst, Naseem Usman said that in the world market, prices of cotton are falling and locally financial problem is not encouraging mills to make big deals. In the whole world textile industry is facing like situation, he said and adding that import of huge stock of cotton from Indian and other countries is also a reason behind the thin business.
Reuters adds: Cotton futures dipped on Friday, stabilizing above the prior session’s low as the price reached technically oversold territory and physical buying picked up with prices near three-month lows. “A lot of people are fixing here every step down,” said Peter Egli, director of risk management at British merchant Plexus Cotton, adding that the calmer day in the stock markets of China, the top consumer of the fibre, prevented the kind of sell-off that had plagued the cotton market the past two days.
March cotton on ICE Futures US settled down 0.03 cent, or 0.05 percent, at 61.40 cents per lb. It traded within a range of 61.31 and 61.90 cents a lb.
The contract closed the week down 3 percent, its largest such loss since the week ended September 18. Total futures market volume fell by 12,205 to 28,279 lots. Data showed total open interest gained 1,175 to 186,384 contracts in the previous session. The following deals were finalised: 400 bales from Bandhi at Rs 5250, 400 bales from Chistian at Rs 5275, 400 bales from Vehari at Rs 5350, 200 from Faqirwali at Rs 5350, 400 bales from Fort Abbas at Rs 5400, 600 bales from Yazman Mandi at Rs 5450 and 5475 and 800 bales from Rahim Yar Khan at Rs 5650, they said.