Karachi—Firmness prevailed on the cotton market as exporters entered the market, which helped prices to hold the obtaining levels in process of slow trading, dealers said.
The Karachi Cotton Association (KCA), official spot rate was unchanged at Rs 5300, they said.
Prices of seedcotton in Sindh were inert at Rs 1900-2300 and in the Punjab at Rs 1800-2600, they said. In the daily business, nearly 5000 bales of cotton changed hands between Rs 4900-5800, they added. According to the market sources demand was slow by mills but exporters showed fresh interest in the buying.
The ginners now looking somewhat optimistic about prices as the rates obtained prevailing levels despite low business these day, they said.
Some mills were on the sidelines, waiting for the next move by India regarding, cotton export policy, they added. Other analysts said that it appeared that ban on exports by India supported the NY cotton futures, which is increasing these days due to emergence of good purchasing interest from the foreigners.
They also expect that the country may be able to get around 15 million bales of cotton during the current season. According to the Reuters the NY cotton futures settled firmer on Thursday on combined speculative and suspected consumer buying, with a government export sales report giving the market a boost, analysts said. The benchmark May contract on ICE Futures US rose 1.27 cents, or 1.44 percent, to end at 89.58 cents per lb, dealing from 88.05 to 89.74 cents.
Volume traded Thursday amounted to slightly under 18,500 lots, about a quarter under the 30-day norm, Thomson Reuters data showed. On Friday the NY cotton futures closed fractionally higher on buying by small speculators in a quiet session and analysts said the market could drift in a narrow band into next week.
The benchmark May contract on ICE Futures US rose 0.05 cent to finish at 89.63 cents per lb, dealing from 89.32 to 90.50 cents. For the week, the market is up 2.45 percent.
Volume traded on Friday amounted to slightly over 13,100 lots, some 45 percent under the 30-day norm, Thomson Reuters data showed. The following deals were reported: 800 bales of cotton from Ghotki (two-month credit) at Rs 5800, 400 bales of cotton from Amrot at Rs 4900, 2400 bales of cotton from Sadiqabad at Rs 5400-5500, 200 bales from Jalal Pur at Rs 5500 and 400 bales of cotton from Rahim Yar Khan at the same rate, they said.—Agencies