Ginners’ strategy not to lower asking prices, caused a decline in daily-intake on the cotton market on Wednesday, dealers said. Official spot rate was unchanged at Rs 5,900, they said. Above, 12000 bales of cotton finalised between Rs 5650 and Rs 6125, they said.
Prices of seedcotton (phutti) in Sindh were down by Rs 100 to Rs 2400-2650, in Punjab, inferior type was unchanged at Rs 2600 and rates of fine type lost Rs 150 to Rs 2750, they said. Market sources said that it seems that prices may come down slightly due to mills’ reluctance in paying prices above Rs 6000 because they are getting finer quality at the same rates after booking orders by importing countries. Cotton analyst Naseem Usman said that Cotton Crop Assessment Committee (CCAC) in it’s second revision meeting estimated total production of cotton at 13.3 million bales (170 kg per bale). Local traders were worried about disturbed situation in country, some of textile businessmen said that we are going to lose our targets for Christmas season due to energy and gas shortage. They also said that other major negative factor will also hurt our image as a reliable supplier in the international market.
US cotton futures were swept lower on Tuesday, retracing the previous three days of gains, on profit taking and pressure from other commodities. After hitting six-week highs on Monday, just shy of 74.5 cents, the most-active March contract on ICE Futures US settled down 1.07 cents, or 1.44 percent, on Tuesday at 72.91 cents per lb.
“As you get to 75 cents, business doesn’t follow and the market backs off as it has today,” said a source at a big US mill. Prices pierced a 100-day moving average on the way down, but garnered technical support at its 40-day moving average around 72.5 cents. The market has been stuck in a range between 70 and 75 cents for the past six weeks, finding support at the lower end from Chinese mill buying.
The following deals were reported: 600 bales of cotton from Sanghar at Rs 5650, 600 bales from Shahdadpur at Rs 5700, 1000 bales from Khairpur at Rs 5975/6000, 2000 bales from Upper Sindh at Rs 6000-6050, 200 bales from Fort Abbas at Rs 5950, 400 bales from Faqir Wali at Rs 5950, 400 bales from Haroonabad at Rs 5950, 400 bales from Yazman Mandi at Rs 5950, 1600 bales from Shujabad at Rs 5950/5975, 400 bales from Bahawalpur at Rs 5950, 600 bales from Dera Ghazi Khan at Rs 5950/6000, 400 bales from Hasilpur at Rs 6000, 2000 bales from Burewala at Rs 6000, 1400 bales from Rahim Yar Khan at Rs 6000/6025, 800 bales from Sadiqabad at Rs 6000-6025, 1400 bales from Kabbir Wala at Rs 6000-6050, 400 bales from Shadan Lund at Rs 6025, 400 bales from Layyah at Rs 6050, 400 bales from Rajanpur at Rs 6100 and 400 bales from Fazilpur at Rs 6125, they said.