Prices Give Up Gains On Cautious Buying By Mills
Prices failed to maintain overnight gains on the cotton market on Thursday amid cautious buying by mills and spinners, dealers said. The official spot rate was down by Rs 50 to Rs 6,600, dealers said. Similarly, falling trend was witnessed in the seed cotton in Sindh, as low type shed Rs 400 to Rs 3000 and best type lost Rs 200 to Rs 3350 per 40 kg, in Punjab, rates also dropped modestly as inferior quality fell by Rs 400 to Rs 3000 and fine type shed Rs 150 to Rs 3450, respectively, they said.
In ready business, over, 12,000 bales of cotton changed hands between Rs 6700 and Rs 7000, they said. Cotton analyst, Naseem Usman said that in line with the global track, prices could not sustain present levels. Under the circumstances, the ginners adopted flexible attitude towards fresh selling, but the mills did not indulged in panic buying, other brokers said. In India prices were soft as Cotton Corporation of India (CCI) started selling, which pushed rates down, they said.
Reuters adds: ICE cotton futures fell more than 1 percent on Wednesday, their largest one-day drop in over two weeks, on a strengthening dollar and as the cotton market corrected an overbought tone.
The following deals were reported: 2000 bales of cotton from Mirpurkhas at Rs 6700, 200 bales from Kunri at Rs 6700, 1600 bales from Shahdadpur at Rs 6700, 1000 bales from Kotri at Rs 6700, 2000 bales from Tando Adam at Rs 6700/6800, 2600 bales from Sanghar at Rs 6700/6800, 1000 bales from Hyderabad at Rs 6700/6800, 200 bales from Vehari at Rs 6895, 500 bales from Chichawatni at Rs 6900, 400 bales from Rahim Yar Khan at Rs 6900 and 200 bales from Haroonabad at Rs 7000, dealers said.
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