Trading activity came down modestly on the cotton market on Saturday as the ginners indulged in cautious selling due to diminishing stock of lint cotton with them, dealers said. The official spot rate was unchanged at Rs 5300, dealers said. Over 2,000 bales of cotton changed hands between Rs 4850 and Rs 5500, they said.
The prices of seed cotton in Sindh were at Rs 1900 and Rs 2500 and in Punjab rates were at Rs 2200 and Rs 3000, they said. According to the market sources, firm trend the world over and delay in sowing in some parts of cotton belt in the country, helped prices to hold firmness. On the other hand, cotton analyst, Naseem Usman said that mills and spinners finalised deals, which were matching with their psychological levels.
Some experts were of the view that rates of cotton to keep present levels as stock of quality cotton is falling with the passage of time, but demand is increasing by mills to cover their immediate needs.
Reuters adds: ICE cotton hit a two-week high on Friday in follow-through buying on the prior session’s gains, which marked the sharpest single-session rise in over two years, as the strengthening technical outlook attracted speculator capital. “Whenever you get a high-volume day up, and an open interest increases, that’s certainly not bearish,” said Jordan Lea, chairman and co-owner of Eastern Trading in South Carolina.
Cotton contracts for July on ICE Futures US settled up by 0.89 cent on Friday, a 1.4 percent gain, at 66.34 cents per pound. It traded within a range of 65.20 and 66.59 cents a pound, its highest level since April 9. The following deals reported: 400 bales of cotton from Hasilpur at Rs 4850, 250 bales from Mian Chano at Rs 5200, 300 bales from Burewala at Rs 5200, 400 bales from Khanewal at Rs 5300, 200 bales from Lodhran at Rs 5350 and 800 bales from Rahim Yar Khan at Rs 5400-5500, they said.