Firmness prevailed on the cotton market on Tuesday as mills and expoters both preferred to make deals of fine quality at their psychological levels, dealers said. The official spot rate maintained an upward march, picked up more Rs 50 to Rs 6550, they said. Price of seed cotton in Sindh per 40 kg were unchanged at Rs 2100-3000, in Punjab rates followed same pattern at Rs 2900-3200, dealers said.
In the ready session, about 18,000 bales of cotton changed hands between Rs 6300-6800, they said. Market sources said that trading activity improved slightly as the mills and exporters showed interest in purchasing of fine type to cover the forward buying ahead of Ashura holidays.
In the meantime, it is likely that local traders may try to lay hands over the Indian cotton, if prices match with their psychological levels, cotton analyst, Naseem Usman said. According to the Reuters, the ICE cotton eased on Monday in heavy, spread-related dealings as trade selling weighed and worries lingered over excess global inventories forecast to record this year as high prices have crimped demand.
The benchmark March cotton contract on ICE Futures US edged down 0.44 cent, or 0.6 percent, to settle at 78.20 cents a lb. The spot December contract edged up 0.09 cent, or 0.1 percent, to finish at 76.97 cents per lb. Fiber underperformed broader commodities markets, with the Thomson Reuters/Core Commodity CRB index ending higher for a third straight session. Trading volumes were heavy, dominated by heavy rolling out of the spot contract and commercial selling activity in March, now the most-active contract.
The following deals reported as 400 bales of cotton from New Saeedabad sold at Rs 6450, 200 bales from Kazi Ahmed at Rs 6300, 400 bales from Khair Pur at Rs 6700, 400 bales from Upper Sindh at Rs 6700, 400 bales from Multan at Rs 6600, 1000 bales from Burewala at Rs 6600, 400 bales from Toba Tek Singh at Rs 6600, 400 bales from Rojhana at Rs 6600, 200 bales from Samandari at Rs 6650, 400 bales from Liaquat Pur at Rs 6650, 400 bales from Chinute at Rs 6650, 400 bales from Chak Jhumra at Rs 6650, 400 bales from Bahawal Pur at Rs 6675, 400 bales from Vehari at Rs 6675, 400 bales from Hasil Pur at Rs 6675, 1000 bales from Haroonabad at Rs 6700, 600 bales from Faqirwali at Rs 6700, 400 bales from Fort Abbas at Rs 6700, 400 bales from Sheher Sultan at Rs 6700, 400 bales from Jatoi at Rs 6700, 400 bales from Tonsa Sharif at Rs 6700, 400 bales from Jalal Pur at Rs 6700, 400 bales from Shujabad at Rs 6700, 800 bales from Ahmed Pur at Rs 6700, 400 bales from Bakhar at Rs 6700, 800 bales from Shadan Lund at Rs 6700, 400 bales from Ali Pur at Rs 6700, 1600 bales from Khan Pur at Rs 6700-6800, 1400 bales from Sadiqabad at Rs 6750/6800, 1200 bales from Rahim Yar Khan at Rs 6750/6800 and 1400 bales from Rajan Pur at Rs 6800, they added.