Mills, Spinners Make Cautious Buying On Cotton Market:

Selective buying by mills and spinners again witnessed on the cotton market on Saturday in the process of trading, dealers said. The official spot rate retained overnight levels at Rs 5,350, dealers said. In Sindh, seed cotton prices were at Rs 2200 and Rs 2800 and in the Punjab, rates were at Rs 2300 and Rs 3000, they said. In the ready business, deals of over 8,000 bales of cotton finalised between Rs 4900 and Rs 5600, they said. 

Cotton analyst, Naseem Usman, commenting on the present scenario, said that despite low supply of cotton, the mills and spinners made cautious buying due to quality factor. Short supply of quality cotton created some confusions among the leading buyers but on the other hand, helping prices to maintain current levels, experts said.

Reuters adds: Cotton futures rose on Friday on worries that unfavourable weather in Texas would hurt crops and strong US government export data in a session shortened by post-holiday trading hours and technical issues. Prices were bolstered by forecasts of freezing rains for key areas of Texas, the top-producing state, traders said. Export sales hit a marketing year high of 257,600 running bales in the week to November 19, up 38 percent from the previous week, US Department of Agriculture (USDA) data showed on Friday.

“The exports were great,” said Jack Scoville, a vice president with Price Futures Group in Chicago. The weekly report was delayed due to the US Thanksgiving holiday on Thursday. Trading of the No 2 cotton contract was shut due to technical issues during early trade on Friday. The market reopened at 11 am EST. The March cotton contracts on ICE Futures US settled up 0.65 cent, or 1.03 percent, at 63.93 cents per lb. It hit a one-month high of 64.16 cents a lb.

The following deals reported, 600 bales of cotton from Nawab Shah at Rs 5300, 400 bales from Daur at Rs 5300, 1000 Khairpur at Rs 5375-5400, 600 bales from Shahdadpur at Rs 4900-4950, same figure from Vinder at Rs 5225-5300, 1000 bales from Khairpur at Rs 5350-5400, 800 bales from Saleh pat at Rs 5450-5475, 400 bales from Ghotki at Rs 5600, 200 bales from Dharanwala at Rs 5300, 800 bales from Yazman Mandi at Rs 5400, 600 bales from Faqirwali at Rs 5425, 1000 bales from Mian wali at Rs 5500-5550, 400 bales from Khanewal at Rs 5575, 600 bales from Tonsa Sharif at Rs 5600 and same figure from Rahim Yar Khan at the same prices, dealers said.

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