No further decline was seen in the rates on the cotton market on Tuesday owing to the fresh purchasing by mills and spinners, dealers said. The official spot rate halted more fall at Rs 5,600 dealers said. In the ready business, around 7000 bales of cotton changed hands between Rs 5190-6000, they said. Market sources said that nothing was new except increase in daily off-take, cotton analyst, Naseem Usman said that the ginners were not in a hurry to finalise any deal as feel, they would be able to make high profit in the coming days.
It looks that quality cotton is not available due to shortage, he said and adding that despite import of 3.5 million bales of cotton, the local millers were facing difficulty. Dearth of fine quality and delay in arrivals of fresh arrivals causing high uncertainties among traders, other analysts said.
Adds Reuters: Cotton futures rose on Monday for their biggest one-day gain in two weeks, as investors stepped in to pick up bargains after prices hit four-week lows last week and spurred by a broader gain across commodities. Prices were under pressure last week, testing critical support around 60 cents after the US Department of Agriculture last week forecast a bigger oversupply in the upcoming season. Cotton contracts for July settled up 0.37 cent, or 0.61 percent, at 60.99 cents per lb. It traded within a range of 60.62 and 61.52 cents a lb.
The following deals reported: 300 bales of cotton from Yazman Mandi at Rs 5190, 200 bales from Chichawatni at Rs 5200, 400 bales from Jalalpur at Rs 5550, 2000 bales from Shujabad at the same rate, 1600 bales from Rahim Yar Khan at Rs 5650, 1400 bales from Layah at Rs 5800 and 600 bales from Fort Abas at Rs 6000 (conditionsal), dealers said.