Most of the leading buyers were on the sidelines on the cotton market on Monday amid better-than-expected seed cotton arrivals, dealers said. The official spot rate was unchanged at Rs 6,850, they added. Prices of seed cotton in Sindh per 40 kg were unchanged at Rs 2400 and Rs 2800, in Punjab, rates were inert at Rs 2400 and Rs 3000, dealers said. In the ready session, not a single deal reported mainly because of attitude adopted by the mills and spinners, dealers said.
They said that around 13.36 million bales of cotton reached at country’s ginneries, fortnightly figures till March 1, issued by the Pakistan Cotton Ginners Association (PCGA), showing an increase of 4.43 percent against the last year. The ginners cut down prices to dispose of unsold stock, the millers and spinners preferred to adopt wait-and-see attitude just to observe the direction of market after the PCGA report, Cotton Analyst, Naseem Usman said.
Reuters adds: China’s state cotton stockpiler bought 132,480 tonnes of fibre last week, its lowest weekly volume since the buying season began, suggesting that total purchases are close to finishing at around 6 million tonnes, official statistics showed on Monday.
Stockpiling by the world’s top cotton buyer is a driver of global prices. China’s buying for state reserves, now in its third year, drives import demand as it leaves little available for domestic sale and pushes up local prices. As a result of lack of buying interest, no deal report on Monday, they added.