No visible change was seen on the cotton market on Tuesday as most of the participants were on the sidelines in the absence of fresh leads, dealers said. The official spot rate was unchanged at Rs 6,400, they added. In the ready session, around 1600 bales of cotton changed hands between Rs 6000-6400, dealers said.
Most of the mills and spinners did not take part in trading in the absence of strong demand, they said. There were high expectations about the rise in cotton yarn buying by local buyers after the Economic Co-ordination Committee (ECC) decision, cotton analyst, Naseem Usman said. It is unlikely to achieve the target of 14-15 billion dollar for textile exports, some analysts said.
Reuters adds: cotton futures edged down on Monday in light volumes as an absence of investor buying and concerns over waning demand kept prices under pressure. The most-active July cotton contract on ICE Futures US closed down 0.13 cent, or 0.1 percent, to settle at 92.34 cents a lb as prices hugged support along their 10- and 14-day moving averages. Volumes were below average following the long weekend. The front-month May ICE contract slipped 0.48 cent, or 0.5 percent, to finish at 89.69 cents per lb as it neared its May 7 expiry. The following deals were reported: 600 bales of cotton from Shujabad at Rs 5400, same number of bales from Rahim Yar Khan at Rs 6000 and 400 bales of cotton from Sadiqabad at Rs 6300, they said.