Persistent mills’ buying helped prices maintain stable trend on the cotton market on Tuesday, dealers said. The official spot rate remained unchanged at Rs 5850, they said. In the ready business over 10,000 bales of cotton changed hands between Rs 5785-6000, they said.
The price of seedscotton in Sindh low type was at Rs 2625 and best quality was at Rs 2650, in Punjab rates were at Rs 2500-2650, they added. Market sources said that mills are looking for good quality cotton, in the meantime, the exporters were on the sidelines and waiting for decline in the rates. Many in market were expecting rain in both Sindh and Punjab, which will be beneficial for the standing crop, they said and added that recent stability in the NY cotton futures is also a factor, which has helped the rates to resist fall despite the continued increase in phutti arrivals.
The ginners are not holding the unsold stuff because they are getting better rates but some of them adopted cautious selling on expectations of good profit after more rain in cotton belt, they said. According to the Reuters, the NY cotton futures settled lower on Monday on profit-taking and investor sales as the fibre declined for the first time in four sessions due to weak financial and grain markets, brokers said.
Cotton contracts came under pressure from a selloff in world stocks as euro tumbled versus dollar on bailout fears in Spain, while US corn fell one percent from record highs after forecasts of rain in drought-hit US areas. The benchmark December cotton contract on ICE Futures US fell 0.75 cent or one percent to end at 72.19 cents per lb, trading from 71.21 to 72.90 cents. Volume traded on Monday stood near 11,700 lots, some two-thirds under the 30-day norm, Thomson Reuters data showed.
The following deals were reported: 200 bales of cotton from Tando Mohammad Khan sold at Rs 5900, 400 bales of cotton from Tando Jan Mohammad at Rs 5900, 600 bales of cotton from Hyderabad at Rs 5900-5950, 1400 bales of cotton from Mir Pur Khas at Rs 5900-5950, 1400 bales of cotton from Sanghar at Rs 5900-5950, 1200 bales of cotton from Shahdad Pur at Rs 5900-5950, 800 bales of cotton from Tando Adam at Rs 5900-5950, 400 bales of cotton from Nooriabad at Rs 5950, 200 bales of cotton from Bahawal Pur at Rs 5800, 100 bales of cotton from Gajjo Mandi at Rs 5850, 1100 bales of cotton from Burewala at Rs 5800-5950, 400 bales of cotton from Sahiwal at Rs 5785-5975, 300 bales of cotton from Vehari at Rs 5785-5900, 600 bales of cotton from Haroonabad at Rs 5800-5900, 400 bales of cotton from Chichawatni at Rs 5950, 400 bales of cotton from Multan at Rs 5950/6000, 200 bales of cotton from Pak Pattan at Rs 5850 and 200 bales of cotton from Hasil Pur at Rs 6000.