Lean business seen on cotton market

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Not a visible change was seen on the cotton market on Tuesday as some spinners finalised deals of fine type, dealers said. The official spot rate was unchanged at Rs 5,300, dealers said. In Sindh and Punjab prices of seed cotton were at Rs 1600 and Rs 2800, they said. In the ready business, over 4000 bales of cotton changed hands between Rs 5000 and Rs 5500, they said.

According to the market sources, not a change was witnessed in the session as some spinners and mills did routine buying of fine quality. Cotton analyst, Naseem Usman said that sluggish demand of cotton yarn and fabric in the local market creating unforeseen uncertainties among buyers. On the other hand, the ginners who were facing liquidity crunch, demanded to ban on cotton import, not accepted by the mills and spinners, other analysts said. As a whole, the commodities, including cotton facing high uncertainties the world over, they added.

Reuters adds: Cotton futures eased for a second session on Monday as the US dollar and equities rallied and traders worried about waning demand for natural fibre as China prepares to auction off its massive stockpile. Data on Monday showed China’s cotton imports in January sank 40.7 percent, with a 74 percent fall in demand for US fiber. Cotton contracts for May settled down 0.85 cent, or 1.43 percent, at 58.69 cents per pound. They traded within a range of 58.6 and 60.16 cents a pound. Speculative investors increased their net short position in cotton by 4,313 lots to 16,931 lots, the biggest in just over a year after turning net short just one week prior, in the week to February 16, data showed on Friday. The following deals reported: 400 bales of cotton from Burewala sold at Rs 5000-5400, 200 bales from Faqirwali at Rs 5200, 1647 bales from Rahim Yar Khan at Rs 5250-5450, 1000 bales from Sadiqabad at Rs 5450-5500 and 200 bales from Mianwali at Rs 5500, dealers said.

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