Seedcotton prices drifted lower on the cotton market on Friday in the process of modest trading, dealers said. Official spot rate was unchanged at Rs 5650, they said. In the ready business, nearly 4000 bales of cotton changed hands between Rs 5600-5700, they said. Prices of seedcotton in Sindh and Punjab were at Rs 2200-2500, they added.
Some brokers said that stagnant rainy water may delay in picking operation in both Punjab and Sindh, which may cause a modest rise in prices but it could proved short lived owing to weak economic outlook the world over. It is most likely that prices show further decline due to better production amid slow demand as this year India received fairly better monsoon rains, which removed the fears of shortage of cotton production, Naseem Usman said.
According to the Reuters, the NY cotton futures ended higher on Thursday, supported by outside market strength linked to a new bond-buying program in Europe aimed at containing the region’s debt crisis. ICE cotton futures volumes stood above 14,500 lots in late New York business, nearly 40 percent below the 30-day norm, according to preliminary Thomson Reuters data. The benchmark December cotton contract rose 0.64 cent to finish at 75.99 cents per lb, after dealing between 74.80 and 76.19 cents.
The following deals reported: 400 bales of cotton from Shahdad Pur at Rs 5675, 400 bales of cotton from Sanghar at Rs 5650, 400 bales of cotton from Mir Pur Khas at Rs 5650/5700, 400 bales of cotton from Hyderabad at Rs 5650/5700, 600 bales of cotton from Tando Adam at Rs 5675/5700, 600 bales of cotton from Vehari at Rs 5600/5700, 200 bales of cotton from Bahawal Nagar at Rs 5600, 1200 bales of cotton from Haroonabad at Rs 5650, 400 bales of cotton from Burewala at Rs 5625/5650, 200 bales of cotton from Mian Chano at Rs 5650, 200 bales of cotton from Hasil Pur at Rs 5650, 200 bales of cotton from Kabir Wala at Rs 5665, 200 bales of cotton from Gaggo Mandi at Rs 5675, they said.