Trading activity improved on the cotton market on Tuesday as needy mills started buying to cover the near-term requirements, dealers said. The official spot rate resisted further slide, holding overnight level at Rs 6,600, they said. Rates of seed cotton in Sindh were unchanged at Rs 1,800 and Rs 2,400, while in Punjab, prices showed no change at Rs 1,800 and Rs 2,500, they said. In ready business around, 9,000 bales of cotton changed hands between Rs 6,450 and Rs 6,750, they said.
Cotton analyst Naseem Usman said mills and spinners were little active to cover their urgent needs, adding when economic condition was not encouraging, how any businessman or trader could feel satisfied, if looked that uncertainties might settle down after election, he said. Other brokers said the ginners were ready to sell but the mills were not able to purchase due to financial problem.
According to Reuters, the ICE cotton futures eked out gains on Monday as traders covered short positions and snapped up fibre after last week’s drop to six-week lows. The most-active July futures contract on ICE Futures US settled 0.93 percent higher at 86.15 cents per lb. While the gains brought an end to two days of losses, prices were still languishing close to six-week lows around 85 cents hit last week.
The following deals were reported: 2,000 bales of cotton from Rohri at Rs 6,625, 400 bales of cotton from Mian Wali (low quality) at Rs 5,450, 400 bales from Bahawal Pur at Rs 6,000, 400 bales from Faqir Wali at Rs 6,200, 200 bales from Yazman Mandi at Rs 6,400, 600 bales from Haroonabad at Rs 6,700, 600 bales from Jhang at Rs 6,700 and 4,400 bales from Shujabad at Rs 6,750, they said.