Mills and spinners showed interest in fresh buying as prices dropped modestly on the cotton market on Tuesday, dealers said. The official spot rate was down by Rs 50 to Rs 5,550, dealers said. In Sindh, seed-cotton prices were at Rs 2800-3100, per 40 kg, they said. In ready session, over 2000 bales of cotton finalised between Rs 5000 and Rs 5800, they said. According to the market sources, mills indulged in fresh buying to meet their requirements.
Cotton analyst, Naseem Usman said that the ginners, who were not interested in selling, now sold some hundred bales at their psychological levels. Prices were higher in the NY cotton futures, china and Indian markets due to strong demand.
Reuters adds: Cotton futures surged in high-volume trade on Monday to their highest in nearly six months, supported by a commodities uptrend driven by a weaker dollar. The natural fibre rallied 2.6 percent, the biggest percentage gain in seven weeks. Prices neared the old resistance level of 66 cents and might try to stay up, said Ron Lee, general manager at McCleskey Cotton in Bronwood, Georgia.
The most-active December cotton contract on ICE Futures US settled up 1.63 cent, or 2.55 percent, at 65.54 cents per lb. It traded within a range of 63.81 to 65.75 cents a lb. Total futures market volume rose by 17,802 to 53,111 lots. The following deals reported: 1600 bales of cotton from Tando Adam sold at Rs 5700, 200 bales from Khanewal at Rs 5000, same figure from Mian Chano at the same rate and 100 bales from Shahaddpur at Rs 5800, dealers said.