Prices maintained firm posture on the cotton market on Monday in the process of slow trading, dealers said. The official spot rate was unmoved at Rs 5,350 dealers said. In the Punjab, prices of seed cotton were at Rs 2600 and Rs 3200, they said. In the ready business, nearly 1200 bales of cotton changed hands between Rs 5150 and Rs 5500, they said.
Some brokers said that the ginners were looking not in a hurry in fresh selling prices in the China and NY cotton market moved up despite higher unsold stock of cotton in China. But in Pakistan and India situation is different due to short crop news, they said. Cotton analyst, Naseem Usman said that local cotton prices remained under influenced by the global development such as decline in the US exports and China’s entry in the international market.
Despite these negative factors, prices showed an upward trend in the world markets, he added. He also said that the Pakistan Cotton Ginners Association (PCGA) final report likely to show 9.76 million bales of cotton. According to reports, China will start annual cotton sales, set to occur from May to August, in order to reduce its massive state reserves down to a “reasonable level,” the country’s state planner said on Friday.
For this year, the reserve sales will begin on May 3 and continue until August 31, with total sales not exceeding 2 million tonnes, according to a joint statement by the National Development and Reform Commission (NDRC) and the finance ministry.
Cotton supplies in Indian spot markets fell 12 percent from a year ago to 28 million bales between October and March as adverse weather curtailed production, stated the Cotton Association of India on Monday. The world’s biggest cotton producer is likely to harvest 34.1 million bales of cotton in the 2015/16 season, that started on October 1, down from last year’s output of 38.3 million bales, added the trade body.
Trade bodies are consistently reducing cotton production estimates for the current season as pest attacks and the first back-to-back droughts in nearly three decades hampered per-hectare yields. The following deals reported: 400 bales of cotton from Ranipur at Rs 5150, same number from Ghani Goth at Rs 5500 and equal figure from Jalalpur at the same prices, they said.