Prices dropped modestly on the cotton market on Wednesday in the process of low trading activity, dealers said. The official spot rate fell by Rs 50 to Rs 5,550 dealers said. In the ready business, around 3000 bales of cotton changed hands between Rs 4525-5600, they said. According to the market sources, no normal activity was seen as the ginners who have little stock of quality lint, were not willing to sell at the present level. Sharing the same opinion, cotton analyst, Naseem Usman said that most of the leading mills were also conspicuous by their absence because asking prices by ginners were not matching with their psychological levels.
Adds Reuters: Cotton futures rose on Tuesday for their biggest one-day gain in more than four weeks as investors continued to cover their shorts and place new bullish bets amid a weaker dollar, traders said. Prices were also lifted by buying across the agricultural market, as soybeans hit their highest since November 2014. Cotton contracts for July settled up 1.21 cents, or 1.98 percent, at 62.2 cents per lb. It traded within a range of 61 and 62.5 cents a lb. Total futures market volume rose by 9,866 to 30,456 lots. Data showed total open interest fell 1,002 from 188,149 contracts in the previous session, suggesting the gains were in part due to short covering. The following deals reported: 200 bales of cotton from Buchiri sold at Rs 4525, same figure from Muhammadpur Dewan at Rs 5450, 1500 bales from Khanewal at Rs 5550 and 921 bales of cotton from Rahim Yar Khan at Rs 5600, dealers said.