Cotton market: leading mills stay away on hopes of further slide in rates

0
259

Most of the mills and spinners were on the sidelines in expectation of further decline in prices, dealers said on the cotton market on Saturday. The official spot rate was unchanged at Rs 5300, dealers said. In Sindh, seed cotton prices were at Rs 2500 and Rs 2900 and in the Punjab rates were at Rs 2400 and Rs 3000, they said.

In the ready business, nearly 15,000 bales of deals were finalised between Rs 4800 and Rs 5550, they said. According to since the Indian cotton has started arriving in the local market, the prices have begun to go down and it is most likely that rates may lose ground further due to said reason.

Cotton analyst, Naseem Usman shared the same views, attributed the fall in business activity to the less buying interest by ginners. Despite downward revision for cotton production this year and launching of Kissan Package, the mills and spinners were also not looking very happy, making deals to meet urgent requirements.

Adds Reuters: ICE cotton futures fell to their lowest levels in 3-1/2 weeks on Friday, as a stronger dollar weighed on prices and the ongoing US harvest led to seasonal pressure, prompting the fibre to suffer its sharpest weekly decline in nearly two months. December cotton on ICE Futures US settled down 0.29 cent, or 0.5 percent, at 61.66 cents per lb. It traded within a range of 61.65 and 62.20 cents a lb.

The contract lost 2.7 percent on the week, its sharpest weekly decline since the week ended September 18. Total futures market volume rose by 9,210 to 38,026 lots. Data showed total open interest gained 910 to 194,965 contracts in the previous session.

The following deals reported: 800 bales of cotton from Shahdadpur at Rs 4800-5000, 200 bales from New Saeedabad at Rs 4950, 3000 bales from Khairpur at Rs 5350-5400, 2000 bales from Sukkur at Rs 5350-5450, 600 bales from Burewala at Rs 5350, 400 bales from Chistian at Rs 5400, 800 bales from Haroonabad at Rs 5450, same figure from Jalalpur at the same rate, 1000 bales from Yazman Mandi at Rs 5450-5525, 400 bales from Tonsa Sharif at Rs 5500, 600 bales from Fort Abbas, 400 bales from Fazilpur, 600 bales from Alipur all done at the same rate, 1200 bales from Rajanpur at Rs 5500-5550, 400 bales from Mianwali at Rs 5525, 600 bales from Bahawalpur and 400 bales from Ahmedpur finalised at the same price, dealers said.

LEAVE A REPLY