Cautious buying by mills was seen on the cotton market on Friday in the process of trading, dealers said. The official spot rate was unchanged at Rs 7,000, they added. Prices of seed cotton in Sindh per 40 kg were unchanged at Rs 2500 and Rs 2800, in Punjab, prices were inert at Rs 2500-3200, dealers said. In the ready session, around 5000 bales of cotton changed hands between Rs 6875-7200, dealers said.
According to the market sources, usual buying by mills and spinners were seen in the day, a few experts were also in the arena to make deals, but they could not do as because rates failed to match with their psychological levels. Cotton analyst, Naseem Usman said that almost all, the globe is facing financial crisis due to recession, this is the main factor, which is not allowing traders to do business in a proper manner.
Reuters adds: Cotton futures eased on Thursday in heavy trading, retreating from the previous session’s 6-month highs, under pressure from the rolling of closely-watched commodities index funds. The most-active May cotton contract on ICE Futures US edged down 0.27 cent, or 0.3 percent, to settle at 88.58 cents a lb. The spot March contract fell more sharply, finishing down 0.77 cent, or 0.9 percent, at 87.60 cents a lb. Volumes were heavy throughout the session as traders moved positions from the March contract into May.
The following deals reported as 800 bales from Mir Pur Khas sold at Rs 6100, 400 bales from Fort Abbas at Rs 6875, 600 bales from Yazman Mandi at Rs 6875, 200 bales from Vehari at Rs 6900, 200 bales from Multan at Rs 6900, 400 bales from Haroonabad at Rs 6950, 1000 bales from Faqir Wali at Rs 6950-7000, 300 bales from Shah Jamal at Rs 7200, 800 bales from Shujabad at Rs 7200 and 200 bales from Fazil Pur at Rs 7200, they added.