Main participants kept on the sidelines on the cotton market ahead of federal budget for 2015-16, dealers said on Wednesday. The official spot rate was inert at Rs 5400, dealers said. In the ready session, only 1400 bales of cotton sold at Rs 4600, they said. Commenting on the present trend in the market, cotton analyst, Naseem Usman said both buyers and sellers were preferred to be sideline ahead of budget.
In the meantime, he said that some buyers were also not interested in new deals as it is most likely that new crop may start arriving at the end of June. But the ginners were keen to sell unsold cotton as much as they can sell, he added.
Reuters adds: ICE cotton futures jumped on Wednesday, erasing losses from the prior three sessions as chart patterns suggested the end of a downturn in prices. July cotton on ICE Futures US settled up by 1.64 cent on Wednesday, a 2.6 percent gain, at 65.24 cents per pound. It traded within a range of 63.44 and 65.39 cents a pound.
The December contract’s premium to the July contract fell to 0.04 cent per lb, down from 0.46 cent per lb the prior session. Total futures market volume rose by 9,454 to 33,639 lots. Data showed total open interest fell 833 to 187,675 contracts in the previous session. The following deals reported: 200 bales of cotton from Chichawatni at Rs 5600 and 1200 bales from Khanpur at the same rate, they said.