Prices showed softness on the cotton market on Wednesday as a result of panic selling by ginners following the increase in Phutti arrivals, dealers said. The official spot came down, losing Rs 100 to Rs 6000, they said. In the ready business, over 8000 bales of cotton changed hands between Rs 6050-6300, they said.
The prices of seedscotton in Sindh low type shed Rs 100 to Rs 2600 and fine quality was lower by Rs 75 to Rs 2650, in Punjab rates also came down to Rs 2700-2750, they said. Market analysts said that after sharp rise in the phutti arrivals, ginners got panic started selling at the lower rates. After, short rain in cotton belt, it is most likely that the phutti arrivals will pick up, which is an indication of further decline in the prices, they said. Furthermore, other factor behind the slide in rates was steep fall in the NY cotton futures, they added.
They further said that if rain started again and lasted for many days, this may not beneficial for the standing crop. According to the market sources, Cotton futures fell the most in percentage terms in almost a month on Tuesday on speculative sales and profit-taking, marking one of the few set backs to the steady gain of recent weeks, dealers said.
The benchmark December cotton contract on ICE Futures
U.S. ended down 2.25 cents at 71.05 cents per lb, moving from 73.40 cents to 70.79 cents. The 3 percent loss was the steepest since June 21.
Monday’s was the loftiest close for the second-position cotton contract since June 19, Thomson Reuters data showed.
Volume traded Tuesday stood near 19,000 lots, almost 40 percent under the 30-day norm, Thomson Reuters data showed. On Monday 13,613 contracts traded, according to ICE Futures data.
The following deals reported: 800 bales of cotton from Shahdad Pur at Rs 6050-6100, 1000 bales of cotton from Sanghar at Rs 6050/6100, 1000 bales of cotton from Tando Adam at Rs 6050/6100, 200 bales of cotton from Multan at Rs 6400, 200 bales of cotton from Hasil Pur at Rs 6400, 1800 bales of cotton from Burewala at Rs 6250/6400, 200 bales of cotton from Kasso wal at Rs 6310, 200 bales of cotton from Pir mahal at Rs 6300, 200 bales of cotton from Khanewal at Rs 6300, 200 bales of cotton from Bahawal Pur 6300, 400 bales of cotton from Mian Channu at Rs 6275, 400 bales of cotton from Chichawatni at Rs 6250/6275, 200 bales of cotton from Darhanwala at Rs 6275, 200 bales of cotton from Shaheed Chowk at Rs 6265, 200 bales of cotton from Illahabad 6250, 400 bales of cotton from Haroonabad at Rs 6250, 200 bales of cotton from Lodhran at Rs 6200, they said.