Cotton market: prices drop slightly on modest trade

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Prices fell on the cotton market on Friday despite decline in seed cotton arrivals, dealers said. The official spot rate was down by Rs 50 to Rs 5,300, dealers said. In Sindh, prices of seed cotton at Rs 1600 and Rs 2800, in the Punjab, rates were at Rs 2000 and Rs 3000, they said.

In the ready business, over 2000 bales of cotton changed hands between Rs 5200 and Rs 5480, they said.

According to the market sources, downward trend in the Pakistan Cotton Ginners Association (PCGA) fortnightly report, failed to propel mills to make deals in a big way.

Cotton analyst, Naseem Usman sharing the same opinion said that spinners were conspicuous by their absence, uncertainty in the world cotton markets also a leading factor behind the fall in trading activity, he added.

Besides, sliding prices in commodities, keeping markets shaky around the globe, other viewers said.

Reuters adds: Cotton futures rose to the highest in more than a week in choppy trading on Thursday, briefly piercing the key psychological 60-cent mark on short covering and as investors started to roll their positions forward ahead of the March contract expiry.

Some traders said prices were also aided by higher crude oil and US equities, although those gains were tempered when the markets lost upward steam following bearish data.

Traders were awaiting weekly export data, delayed from Thursday due to the US holiday earlier in the week, for signs of how robust mill demand was during the recent sell-off.

The most-active May cotton contract on ICE Futures US settled up 0.15 cent, or 0.25 percent, at 59.7 cents per lb, after hitting 60.40 cents a lb, the highest price since February 9.

The following deals reported: 400 bales of cotton from Faqirwali at Rs 5200, same figure from Yasman Mandi at Rs 5325, 1000 bales from Mianwali at Rs 5475 and 600 bales from the same station at Rs 5480, dealers said.

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