Lacklustre Business Seen On Cotton Market

Lacklustre Business Seen On Cotton Market
Not a single deal finalised on the cotton market on Friday as mills and spinners most of the time kept on the sidelines due to less demand for yarn and low quality of old stocks, dealers said. The official spot rate was unchanged at Rs 5,500, dealers said. In Sindh, seed-cotton prices were at Rs 2900-3050, per 40 kg, they said. According to the market sources, buyers were reluctant to enter in new deals because of slow demand for yarn.
Cotton analyst, Naseem Usman said that global market was in full swing but on the other hand, local spinning mill owners were not taking interest mainly because of low demand. Other experts also said that so far 600 bales of new cotton have been sold out. It looks the local mills and spinners were avoiding deals due to less supply of fine quality.
Reuters adds: Cotton futures fell on Thursday from a high of more than nine months in the previous session, pressured by weakness in outside markets and a stronger dollar ahead of a key government report on Friday. “It’s probably a little bit of evening up on profit taking ahead of the crop report,” said Jobe Moss, a broker with MCM Inc in Lubbock, Texas, referring to the US Department of Agriculture’s World Agricultural Supply and Demand Estimates (WASDE) report.
Prices of the natural fibre were also pressured by losses in the grains markets and weaker crude, he added. Sales of upland cotton totalled 110,100 running bales in the most recent week, down 12 percent from a week earlier, US government data showed. The December cotton contract on ICE Futures US settled down 0.66 cent, or 1 percent – the largest percentage fall in three weeks – at 65.3 cents per lb. It traded within a range of 64.8 to 65.84 cents a lb.