Easy supply position caused further decline in the prices on the cotton market on Saturday, dealers said. The official spot rate after one-day gap, continued fall, losing Rs 50 to Rs 6800, they said. Prices of seed cotton in Sindh per 40 kg low type lost Rs 400 to Rs 1800 and the best type maintained its overnight level at 2900, in Punjab rates were down by Rs 100 to Rs 2700, the fine variety was inert at Rs 3000 dealers said. In the ready session, around 28,000 bales of cotton changed hands between Rs 5050-6900, they said.
Some brokers said that mills were not in a hurry to make deals at the present levels as there were definite rates will come down in days to come. They looked in relaxed mood as they have made a number of deals on the basis of quality factor, cotton analyst, Naseem Usman said. So much hot weather is not good for the standing crop, which can damage the variety of crop, so they are on the safe.
The situation is in favour of buyers, now the ginners have to show some flexibility in their attitude, they said. According to the Reuters, Cotton futures eased on Friday and slid to their biggest weekly loss in two months as Northern Hemisphere harvests gathered pace and the return of key US government data reinforced concerns over slowing demand and excess supplies.
The most-active December cotton contract on ICE Futures US closed down 0.13 cent, or 0.2 percent, at 79.08 cents a lb, reversing the day’s earlier gains. The contract touched a nine-month low on Thursday and posted its biggest down week since late August, as the return of US government data reinforced worries over excess supplies.
Technical pressure added to the losses. A fall past a key trend line near 81.70 cents a lb drove waves of selling earlier in the week. The following deals reported as 400 bales of cotton from Tando Ghulam Mohammad sold at Rs 5050, 1000 bales of cotton from Sanghar at Rs 5125-5500, 600 bales from Mir Pur Khas at Rs 6000, 400 bales from Nawab Shah at Rs 6700, 1000 bales from Khairpur at Rs 6750/6800, 2000 bales from Khairpur (BCI) at Rs 6800/6850, 2000 bales from Upper Sindh at Rs 6750/6800, 3000 bales from Upper Sindh (BCI) at Rs 6800/6850, 1400 bales from Hasilpur at Rs 6750-6800, 600 bales from Pak Pattan at Rs 6800, 400 bales from Bahawalpur at Rs 6800, 3000 bales from Buewala at Rs 6800-6825, 1600 bales from Ahmedpur at Rs 6800-6825, 400 bales from Bahawal Nagar at Rs 6800/6825, 600 bales from Shahdan Lund at Rs 6825, 400 bales from Uch Sharif at Rs 6850, 1000 bales from Haroonabad at Rs 6800/6850, 1000 bales from Sadiqabad at Rs 6800-6900, 1000 bales from Rahim Yar Khan at Rs 6800/6850, 400 bales from Garma Raja at Rs 6875, 600 bales from Mian Chano at Rs 6875, 1000 bales from Liaquatpur at Rs 6875, 800 bales from Alipur at Rs 6925, 600 bales from Bakhar at Rs 6975 and 3000 bales from Layyah at Rs 6900, they added.