Cotton market: Prices drop further on improved arrivals
September 17, 2014 RECORDER REPORT 0 CommentsE-mailPrintPDF
Significant improvement was seen in arrivals of seed cotton, caused panic selling, pushing rates further down on the cotton market on Tuesday, dealers said. The official spot rate fell by Rs 100 to Rs 5,550, they added. In the session, over 15,000 bales of cotton changed hands between Rs 5600 and Rs 5750, they said. In Sindh, rates slipped by Rs 100 to Rs 2400 and Rs 2550, in Punjab prices were at Rs 2300 and Rs 2500, they said.
Cotton analyst, Naseem Usman said that buying pressure eased by mills and spinners as reports started reaching that flow of flood water may not damage the standing crop, it is a positive development but the sellers who were hoping for better returns as a result of damage of crop from floods, selling their stuff at the cheap rates. But now it looks that prices may not show more weakness, other brokers said.
Reuters adds: cotton futures dropped more than 3 percent on Monday, the most in more than four months, as optimism over the US government’s monthly crop report turned to gloom about global oversupply and waning demand from China, the world’s No 1 cotton buyer. Coming off an eight-week high, the most-active December cotton contract on ICE Futures US closed down 2.16 cents, or 3.2 percent, at 65.84 cents a lb, its largest daily drop since early May, on healthy turnover.
The following deals reported: 400 bales of cotton from Shahpur Chakar sold at Rs 5625-5650, 1800 bales from Sanghar at Rs 5600-5650, 2000 bales from Mirpurkhas at Rs 5600-5700, 400 bales from Hala at Rs 5650, 200 bales from Moro at Rs 5650, 1200 bales from Tando Adam at Rs 5625-5700, 2000 bales from Shahdadpur at Rs 5625-5700, 1000 bales from Khairpur at Rs 5675-5700, 1000 bales from Upper Sindh at Rs 5650-5700, 400 bales from Gaggo Mandi at Rs 5650, 200 bales from Burewala at Rs 5650, 200 bales from Mian Chano at Rs 5650, 1000 bales from Vehari at Rs 5650-5700, 200 bales from Pak Pattan at Rs 5675, 200 bales from Gojra at Rs 5675, 200 bales from Pir Mehal at Rs 5675, 200 bales from Bahawalnagar at Rs 5700, 200 bales from Haroonabad at Rs 5700, 300 bales from Chinute at Rs 5700-5725 and 2300 bales from Khanewal at Rs 5700-5750, they said.