Cotton market: activity fails to pick up pace amid lack of buying interest
Trading activity could not pick up on the cotton market on Wednesday owing to lack of buying interest, dealers said. The official spot rate was unchanged at Rs 4,950, dealers said. In the ready session, over 12,000 bales of cotton changed hands between Rs 3850 and Rs 5200, they said. The seed cotton in Sindh was available at Rs 1800 and Rs 2400, in Punjab rates were up by Rs 200 to Rs 2000 and Rs 2700, they said.
Some experts said that local buyers were not interested in fresh purchasing as just in three-day period, the local buyers had made deals to import nearly 80,000 bales from South Africa due to cheaper rates with better quality against the domestic stuff.
In the meantime, cotton analyst, Naseem Usman said that local exporters and mills were also purchasing local cotton on expectations of winning orders from the European Union (EU). The textile exhibition started today in Frankfurt, Germany, will continue till tomorrow (Friday), many spinners were participating to take advantage of booking orders, he added.
Reuters adds: ICE cotton rose the most in more than a week on Tuesday, making up part of the previous session’s losses as mills, particularly in top consumer China, found those levels attractive for buying. The most-active front-month March cotton contract on ICE Futures US rose 0.42 cent, or 0.7 percent, to settle at 60.15 cents a lb, its largest single-session gain since January 5.
Prices hit a more than one-week low of 59.51 cents a lb in the previous session due to bearish expectations for a monthly US Department of Agriculture (USDA) supply-demand report, then recovered 0.8 percent. They then retreated back toward the lows after the report showed increases in world and US ending stocks and production.
The following deals reported: 400 bales from Sanghar at Rs 3850, same number from Sethraja at Rs 4650, 600 bales from Nawabshah at Rs 4750, same number from Kazi Ahmed at Rs 4800, 1000 bales from Rohri at Rs 5000, 200 bales from Mian Chano at Rs 4400, 800 bales from Hasilpur at Rs 4850-5000, 600 bales from Burewala at Rs 4900, 400 bales from Yazman Mandi at the same rate, 1000 bales from Bahawalpur at Rs 4950-5000, 600 bales from Dera Ghazi Khan at Rs 5100, 400 bales from Tonsa Sharif at the same rate, 500 bales from Ahmedpur at equal amount, 1000 bales from Liaquatpur at Rs 5150, 1600 bales from Rahim Yar Khan at Rs 5125-5200, 1000 bales from Rajanpur at Rs 5150-5200, same figure from Sadiqabad at the same rates and 400 bales from Mianwali at Rs 5200, they added.