Prices moved up on the cotton market on Saturday amid cautious selling by ginners following expectations for improvement in rates in days to come, dealers said. The official spot rate gained Rs 50 to Rs 6,600, they said. Price of seed cotton in Sindh per 40 kg were unchanged at Rs 2100-3000 and in Punjab rates inert at Rs 2900-3250, dealers said.
In the ready session, about 17,000 bales of cotton changed hands between Rs 6550-7000, they said. Brokers were of the view that the ginners unwillingly selling seed cotton as they expect better return in the coming days, sharing the same views, cotton analyst, Naseem Usman said.
Besides, pink ball warm hurt quality of cotton crop in Sindh, which is causing some alarming situation for the ginners, so they were making deals cautiously, some analysts said. Reports showing that China imported 141,200 tonnes of cotton in October, down 48.1 percent from the same month last year, the China Cotton Association said on Friday.
Imports have declined this year after textile mills ran out of import quotas and turned to importing yarn instead of the cotton raw material. According to Reuters, cotton futures edged up on strong US government export sales data, and ended the week little changed after a volatile week of spread-related gyrations.
The most-active March cotton contract on ICE Futures US rose 74 cents, nearly 1 percent, to settle at 78.20 cents a lb. The second-month ended the week little changed after touching a 10-month low of 77.37 cents the previous day. Front-month December cotton on ICE closed up 6 cents, or 0.8 percent, at 77.12 cents per lb. On Thursday, the ICE cotton prices sank to a fresh nine-and-a-half-month low, handing back the previous day’s gains as demand slowed and stocks rose, underscoring concerns about oversupplies. Fiber was the worst performing asset out of the 19 commodity markets tracked by the Thomson Reuters/Core Commodity CRB index. The most-active March cotton contract on ICE Futures US fell to an intraday low of 77.37 cents per lb, its weakest since mid-January. Prices settled down 1.13 cents, or 1.4 percent, at 77.46 cents per lb. The spot December contract fell 1.45 cents, or 1.85 percent, to end at 76.52 cents a lb. Trading volume were heavy with a combined volume in the two front months of over 30,000 lots.
The following deals reported as 400 bales of cotton from Mir Pur Khas at Rs 5950, 400 bales from Gojra at Rs 6550, 400 bales from Chistian at Rs 6550, 1000 bales from Noor Pur at Rs 6675, 1000 bales from Yazman Mandi at Rs 6675, 400 bales from Bahawal Pur at Rs 6700, 400 bales from Ahmed Pur at Rs 6700, 400 bales from Dunia Pur at Rs 6700, 400 bales from Lodhran at Rs 6700, 400 bales from Khanewal at Rs 6700, 400 bales from Rahim Yar Khan at Rs 6700, 600 bales from Sadiqabad at Rs 6700, 400 bales from Burewala at Rs 6700, 600 bales from Shujabad at Rs 6700, 600 bales from Feroza at Rs 6725, 600 bales from Shadan Lund at Rs 6725, 1400 bales from Maroot at Rs 6700, 4400 bales from Mian Wali at Rs 6750/6800, 1000 bales from Muhammad Pur Dewan at Rs 6800 and 1000 bales from Jhang (Conditional) at Rs 7000, they added.