Downward trend persisted on the cotton market on Wednesday despite sporadic rains in Sindh, dealers said. Official spot rate continued slide, shedding further Rs 50 to Rs 5750, they said. In the ready business, nearly 9,000 bales of cotton changed hands between Rs 5650-5950, they said. The prices of seedcotton in Sindh were inert at Rs 2525-2575 and in the Punjab rate were at Rs 2300-2600, they said.
According to the market sources, prices fell despite fresh rains in Sidh cotton belt. Sharing the same view Naseem Usman said that prices may stabilise amid slow supply of phutti arrivals. Picking operations likely to be disturbed due to rains in cotton belt, other brokers said.
The overall economic situation is not clear, so the textile sector is not out of crisis but expectations of recovery likely to give a boost to textile exports, experts said. Reports showed that the cotton prices in India, are likely to rise marginally on lower supplies in the spot markets, although an increase in rains in key growing areas and higher imports by mills are seen weighing on sentiment.
Drought has hit India for the second time in four years and cotton-growing areas were mostly thirsty during June and July. But a recent spell of rains in the key growing areas could help the standing crop and reduce damage. According to the Reuters, the US cotton prices fell on Tuesday after players took profit on the market’s run-up the previous day on fears of storm damage to crops.
The benchmark December cotton contract on ICE Futures US slid 0.52 cents, or 0.7 percent, to settle at 75.62 cents per lb. The contract jumped 1.2 percent on Monday on worries about the potential harm Tropical Storm Isaac could cause to cotton crops as it headed toward Alabama and Mississippi – two important states in the US cotton belt.
The following deals reported: 3,400 bales of cotton from Shahdad pur, Sanghar and Tando Adam sold at Rs 5750-5800, 1800 bales of cotton from Daran Wala, Chistian, Samandri, Chaniot, Pir Mahal, Gojra, Vehari, Shorkot, Garh Maharaja, Shah Jeevna and Bure wala at Rs 5,700, 1900 bales of cotton from Hyderabad, haroonabad sold at Rs 5750-5800, 200 bales from Hasil pur at Rs 5725, same figure from Sahiwal at Rs 5750, 200 bales of cotton from Bahawal Nagar at Rs 5750-5800, same figure from Chichawatni, 400 bales of cotton from Liaquatpur, 200 bales of cotton from Khanewal at Rs 5800 and same figure from Depal pur at Rs 5950, they said.