Slight improvement in arrivals of seed cotton pushed the rate lower on the local cotton market on Tuesday, dealers said. The official spot rate was lower by Rs 50 to Rs 6,750, they added. The seed cotton from Sindh drifted lower, shedding Rs 100 to Rs 3050-3100 and in the Punjab rates of phutti lost the same amount to Rs 3200-3300 per 40 kg, they said.
In the ready session, about 2000 bales of cotton changed hands between Rs 6400-6600, but in late evening, prices came down further, they said. Commenting on the latest trend in the market, cotton analyst, Naseem Usman who returned from Makkah and Madina after performing Umrah said that unsold heap of yarn is causing a high concern among cotton traders, some experts said. He said that quality of seed cotton is good, but the major buyer (China) is not active because fluctuations in rates of yuan are making imports more expensive. Prices of cotton in India are stable, local cotton traders were expecting that monsoon rains may be favourable for standing crop, other experts said.
Front-month cotton futures in New York fell the daily limit in the final moments of trade on Monday, hitting a two-week low of 84.16 cents a lb as traders raced to exit positions ahead of an expected large delivery against the July contract.
The front-month July contract fell 4 cents a lb ahead of the notice period for cash delivery against the contract, which begins on Tuesday. The big drop came after the settlement window. The July contract closed down 0.64 cent, or 0.7 percent, at 87.52 cents a lb as trading volumes picked up.
The most-active December cotton contract on ICE Futures US closed up 0.6 cent, or 0.8 percent, at 77.68 cents a lb after rallying to a one-week high of 77.90 cents a lb. The following deals were reported: 200 bales of cotton from Golarchi at Rs 6400, 600 bales from Tando Mohammad Khan at Rs 6400-6600, 600 bales of cotton from Mirpurkhas at Rs 6425-6450 and 400 bales from Shahdadpur at Rs 6500, dealers.
Source:- brecorder.com
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