Official spot rate fell on the cotton market on Friday, in the process of moderate buying by mills, dealers said. The official spot rate was down by Rs 50 Rs 6,650, they said. Prices of seed cotton per 40 kg in Sindh maintained overnight level at Rs 3000-3100, while in Punjab rates were at Rs 2700-3000, they said. In the ready session, 14,000 bales of cotton changed hands between Rs 6675-6800, they said.
Cotton analyst, Naseem Usman, said that prices declined on steady arrivals but it was not expected because superior quality was not available easily. Other experts attributed the fall in rates to recent cotton import from India, because fine type of Indian cotton was available at cheaper rate, which could be a reason behind the fresh fall in the local prices.
Besides, reports appeared that India's cotton exports are expected to drop on account of a slump in purchases by top cotton consumer China and higher domestic prices, a Reuters survey of traders and exporters found. In the meantime, quality caution mills were busy in making substantial quantity at the present levels to meet near term needs, they added. During the last several sessions, prices stayed put due to shortage of best quality cotton, the Punjab variety faced with quality problem due to unfavourable weather condition, they added.
Now the situation had changed as cotton variety from Punjab improved, but easy supply might cause further decline in the rates, they added. According to the Reuters, ICE cotton futures hit fresh three-month lows on Thursday as the long liquidation that has knocked 12 percent off fiber's value in the past three weeks continued and the dollar strengthened following upbeat US jobs data.
The most-active December cotton contract on ICE Futures US settled down 0.45 cent, or 0.50 percent, at 82.75 cents a lb, it's weakest since June 3. Prices are on track for a third straight weekly drop. "Cotton prices continued to slip today driven by long liquidation," said INTL FCStone analysts, adding that Chinese prices fell in sympathy with the US market to their lowest since July. The following deals were reported as 2,200 bales from Shahzad Pur at Rs 6775-6800, 2,000 bales from Tando Adam at Rs 6775-6800, 2,800 bales from Sanghar at Rs 6750-6775, 1,600 bales from Mir Pur Khas at Rs 6750/6775, 400 bales from Motri at Rs 6775, 400 bales from Hyderabad at Rs 6775, 800 bales from Nawabshah at Rs 6775-6800, 600 bales from Sakrand at Rs 6775-6800, 400 bales from Daur at Rs 6750, 400 bales from Shah Pur Chakar at Rs 6775, 800 bales from Khair Pur at Rs 6800, 400 bales from Khanewal at Rs 6700, 800 bales from Chichawatni at Rs 6700, 200 bales from Bahawal Pur at Rs 6700, 400 bales from Burewala at Rs 6700, 200 bales from Tonsa Sharif at Rs 6700, 200 bales from Jahanian at Rs 6700, 600 bales from Haroonabad at Rs 6675-6750 they added.
Source:- brecorder.com
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