Cotton market: prices rise on improved business

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Prices improved on the cotton market on Wednesday in the process of trading activity, dealers said. The official spot rate was higher by Rs 100 to Rs 5,600, dealers said. In Sindh, seed-cotton started reaching market and available at Rs 3100, they said. In ready session, over 3000 bales of cotton changed hands between Rs 5750-5800, they said. Cotton analyst, Naseem Usman said that very small number of seed cotton have started reaching and so that we can hope phutti arrivals will improve in times to come. Some brokers observed that trading activity improved as buyers continued their search for quality lint which was short in demand. They said that very little quantity of quality lint is left with the ginners, restricting trading activity.

Other experts said that the ginners asking higher prices for their limited unsold stock was discouraging spinners from entering into big deals. Reuters adds: cotton futures fell on Tuesday, after touching an over three-week high last week, weighed by a stronger dollar on increasing expectations of an imminent US interest rate hike. “The US dollar index was significantly hard and that put pressure on prices” said Louis Rose, independent cotton trader and consultant with Risk Analytics in Memphis, Tennessee, adding that the market was “technically overbought.” Cotton contracts for July settled down 0.34 cent, or 0.53 percent, at 63.94 cents per lb. It traded within a range of 62.9 and 64.46 cents a lb. The dollar index was up 0.35 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.01 percent. The following deals reported: some 2200 bales of cotton from Jahanian sold at Rs 5750 and 1200 bales of cotton from Rahim Yar Khan finalised at Rs 5800, they said.

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