Steadier trend was witnessed on the cotton market on Saturday amid tight supply, dealers said. The official spot rate was unchanged at Rs 7,000, they added. Prices of seed cotton in Sindh per 40 kg (low type) were unchanged at Rs 2800 while the best variety was higher by Rs 300 to Rs 3500, in Punjab the rates of inferior type were inert at Rs 3000 and Rs 4000, dealers said. In the ready session, approximately, 1000 bales of cotton changed hands between Rs 6500-7100, dealers said.
Cotton analyst, Naseem Usman, said that prices held the present firmness due to tight supply amid strong demand by mills and exporters. It is expected that rates may maintain firm trend in days to come, dealers said and adding that fall in production of cotton and expectations for increase in textile items pushed the rate up.
Reuters adds: US cotton futures fell for a third straight day on Friday, selling off on technical factors and poor exports data, after prices hit overbought conditions earlier in the week. The most-active March cotton contract on ICE Futures US closed down 1.1 cents, or 1.3 percent, at 82.94 cents a lb. It lost 0.6 cent in the previous session.
On Tuesday, the last trading day of 2013, the market hit a high of 85.29 cents a lb, the strongest level since early October, before closing slightly lower. That peak triggered technical-selling in ICE cotton when the market reopened on Thursday for the new year. The following deals reported as 600 bales from Shahdadpur at Rs 6500, 200 bales from Fort Abbas at Rs 7050 and 200 bales from Rajanpur at Rs 7100, they added.