Prices continued decline on the cotton market on Thursday as phutti arrivals improved further in process of trading, dealers said. The official spot Was lowered for the second day in a row, shedding Rs 150 to Rs 5850, they said. In the ready business, over 8000 bales of cotton changed hands between Rs 5900-6175, they said.
The price of seedscotton in Sindh for low type was Rs 2600 and for fine quality Rs 2625, in Punjab rates were unchanged at Rs 2700-2750, they said. According to the market sources, rising trend in the phutti arrivals pushed the rates further down as the mills took interest in purchasing of fine quality.
It is expected that the ginners may lower the asking prices, but if rain in the cotton belt, the prices may resist more decline, other experts said. According to the Reuters, cotton futures settled higher on Wednesday on trade and speculative buying as the market bounced back from a profit-taking sell-off in the previous session, brokers said.
The benchmark December cotton contract on ICE Futures US increased 0.87 cent or by 1.2 percent to end at 71.92 cents per lb, trading from 70.45 to 72.92 cents. On Tuesday, December lost 2.25 cents to close at 71.05 cents in the biggest daily percentage fall in the contract since June 21, Thomson Reuters data showed.
The contract’s Monday close at 73.30 cents was the highest for the second-position cotton contract since June 19, Thomson Reuters data showed. Volume traded on Wednesday stood near 11,700 lots, some two-thirds under the 30-day norm, Thomson Reuters data showed.
The following deals were reported: 100 bales of cotton from Shahdad Pur sold at Rs 5900/6000, 1400 bales of cotton from Mir Pur Khas at Rs 5900/6000, 1000 bales of cotton from Tando Adam at Rs 5900/6000, 200 bales of cotton from Mir Pur Khas (1 August Delivery) at Rs 5800, 400 bales of cotton from Khanewal at Rs 6200, 400 bales of cotton from Pir Mahal at Rs 6150/6175, 400 bales of cotton from Burewala at Rs 6000/6175, 200 bales of cotton from Mian Chanu at Rs 6100, 400 bales of cotton from Hasil Pur at Rs 6100, 200 bales of cotton from Sahiwal at Rs 5100, 600 bales of cotton from Bahawal Pur at Rs 6000/6050, 200 bales of cotton from Kabir Wala at Rs 6000, 200 bales of cotton from Vehari at Rs 6000, 200 bales of cotton from Chichawatni at Rs 6000, 200 bales of cotton from Rahim Yar Khan at Rs 6000, 200 bales of cotton from Sadiqabad at Rs 6000, 200 bales of cotton from Lodhran at Rs 5975.