Insipid Business On Cotton Market In Absence Of Major Buyers
As a result of lack of buying interest, leading buyers kept on the sidelines on the cotton market on Friday, dealers said. The official spot rate was unchanged at Rs 5,200, dealers said. In Sindh, seed cotton prices were at Rs 1500-2700, and in Punjab prices at Rs 1800 and Rs 2800, they said. In the ready business, 600 bales of cotton changed bands between Rs 5300-5400, they said.
Market sources observed that some deals finalised in the absence of buying interest by mills and spinners. Cotton analyst, Naseem Usman said that not much improvement was seen in the scenario, because of lack of buying interest by exporters. He said that deepening of crisis in the local textile industry coupled with global outlook of dipping cotton prices were dampening sentiment. Continued fall in the NY, China and Indian cotton markets adding high uncertainties among traders, other analysts said.
Adds Reuters: Cotton futures snapped a four-day losing streak on Thursday, helped by an up tick in US export sales and a weaker dollar. The market is overdone on the downside, said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi. A government report, which showed a 57-percent jump in export sales of upland cotton in the week ended February 25, was “adequate to slightly positive,” Varner noted. The May contract on ICE Futures US settled up 0.48 cent, or 0.86 percent, at 56.41 cents per lb, after climbing as high as 56.64 cents. The following deals reported: 200 bales from Dharanwala at Rs 5300 and 200 bales from Mianwali at Rs 5400, they said.

Reader Interactions

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.