Prices failed to sustain overnight firmness on the cotton market on Wednesday as arrivals of phutti improved in the process of trading, dealers said. The official spot rate was down by Rs 100 to Rs 5000, dealers said. Seed cotton prices in Sindh were at Rs 2450-2550 and in Punjab rates were at Rs 2550 and Rs 2650, they said. In the ready business, approximately, 1800 bales of cotton changed hands between Rs 4950 and Rs 5000, they said.
Commenting on the present trend in the market, some brokers said that arrivals of seed cotton accelerated so prices were coming down. Cotton analyst, Naseem Usman said that as a result of increase in phutti arrivals, more ginning factories have started function in both Sindh and Punjab. As a whole, trading activity failed to depict significant rise due to slow demand by the European countries and some other states, he added. Besides, China will auction an initial volume of one million tonnes of cotton from state reserves during July and August, said the country’s top economic planner on Tuesday.
Reuters adds: cotton futures pared losses on Tuesday after the US Department of Agriculture slashed its estimate for the number of acres farmers have dedicated to cotton more than expected. The benchmark December cotton contract on ICE Futures US was down 0.7 cent, or 1 percent, at 66.58 cents a lb by 12:05 pm EST (1605 GMT) after the report, after plunging more than 3 percent earlier in the session on demand worries.
The following deals reported: 200 bales of cotton from Kotri at Rs 4950, same figure from Matyari done at the same rate, 600 bales from Sanghar at Rs 4950-5000, 400 bales from Tando Adam at Rs 5000, 200 bales from Hala and same figure from Mirpur Khas all finalised at the same rate, dealers said.