Prices were firm on the cotton market on Wednesday as mills lifted fine quality lots to cover their immediate needs, dealers said. The official spot rate was inert at Rs 6,700, they said. Rates of seed cotton were unchanged at Rs 1800 and Rs 2400, in the Punjab prices showed no change at Rs 1800 and Rs 2500, they said. In the ready business, over 4000 bales of cotton changed hands between Rs 5900 and Rs 6900, they said.
Commenting on the present situation of economy, cotton analyst, Naseem Usman said that over all world economic scenario is not so good and this is an important factor, which in fact is dominating these days. The mills and spinners were looking very upset as under the circumstances they are not able to do business with peace of mind, locally, power and gas shortage, the adding factor is different taxes on yarn and other textile items, experts said.
Neighbouring country, India’s cotton exports are expected to fall 37.2 percent to 8.1 million bales in the crop year that began in October 2012. India is the world’s second-largest producer and exporter of cotton, and counts China as its biggest client along with Bangladesh and some south-east Asian countries.
According to the Reuters, ICE cotton fell for a second session as investors continued to liquidate and mills held off purchasing into the falling market, with spot prices down over 11 percent from a one-year high touched last month during a speculator-driven rally. The most active July cotton contract on ICE Futures US edged down 0.7 cent, or 0.8 percent, to close at 85.42 cents per pound on Tuesday. The spot May contract settled down 0.98 cent, or 1.2 percent, at 83.35 cents a lb, down from a one-year high of 93.93 cents touched on March 15.
The following deals were reported: 200 bales of cotton from Haroonabad at Rs 5900, 600 bales from Faqir Wali at Rs 6200, 400 bales from Chistian at Rs 6900, 652 bales from Rajan Pur at Rs 6800, 800 bales from Rahim Yar Khan at Rs 6800, 1285 bales from Yazman Mandi at Rs 6800 and 400 bales from Shehr Sultan at Rs 6900, they said.