Cotton market: No Respite Seen In Falling Trend
The rates continued to fall on the cotton market on Saturday in the process of modest trading, dealers said. The official spot rate dropped further by Rs 50 to Rs 6,350, dealers said. In Sindh, seed cotton prices were unchanged at Rs 3000-3300 and in Punjab rates of Phutti, followed same trend, showing no change at Rs 2600-3200, as per 40 kg, they said. In ready business, around 5000 bales of cotton changed hands between Rs 6350 and Rs 6650, they said.
Some analysts were of the view that most of the buyers were reluctant to enter into long position on anticipation of further decline in rates. They also said that persistent fall in the world cotton market and concerns about quality of cotton not encouraging mills and spinners to make new deals. Cotton analyst, Naseem Usman said that attributed the thin business to less buying interest among buyers as they have bought enough to meet their near-term needs. Unforeseen fears about the size of production induced them to make forward deals, he added.
Reuters adds: Cotton futures fell on Friday, ahead of the US holiday weekend, as damage to crops of the natural fiber from a tropical storm churning through the eastern coast of the United States was lesser than initially anticipated. The following deals were reported: 200 bales from Kot Gulam Mohammad at Rs 6350-6525, 800 bales from Mirpurkhas, 400 bales from Khipro all done at the same rate, 1000 bales from Tando Adam at Rs 6350-6550, 800 bales from Shahdadpur at the same rate, 600 bales from Hyderabad at Rs 6450, 200 bales from Shahpur Chakar at Rs 6500, equal number from Nawabshah at the same price, same figure from Moro at Rs 6525, same number from Salahput at Rs 6550 and same number from Vehari at Rs 6650, dealers said.