Prices firmly held the present levels on sustained buying by mills and spinners, dealers said on cotton market on Thursday. The official spot rate was unchanged at Rs 6450, they said. In the ready session over 16,000 bales of cotton changed hands between Rs 6500-6700, they said. In Sindh, seed cotton rates were at Rs 2900-3100 per 40 kg, they said. In the Punjab, phutti prices were at Rs 2900-3200, they said.
According to the market sources, Cotton Crop Assessment Committee (CCAC) in it’s meeting revised cotton crop production for 2017-18 downward to 12.6 million bales (170 kg per bale) from 14.4 million bales earlier. Cotton analyst, Naseem Usman said that reports from the cotton field indicating that there are some signs of pest attack but not so severe. They also said that farmers and growers should continue spray according to need.
They, however, observed that in the evening session, prices turned lower as a result of pressure selling by ginners. The ginners came under pressure due to rise in arrivals but it seems that selling pressure could be short-lived, they added. The ginners could not get profits last year owing to fall in demand by mills, they said.
Adds Reuters: ICE cotton futures ended almost flat in low volume trading on Wednesday as markets waited for the key supply and demand estimates report on Thursday. Cotton contracts for December settled down 0.02 cent, or 0.03 percent, at 71.11 cents per lb. The contract touched a high of 71.20 cents, a peak since June 14.
Total futures market volume fell by 1,448 to 17,608 lots. Data showed total open interest gained 2,129 to 219,092 contracts in the previous session. The following deals reported: 2000 bales from Sanghar sold at Rs 6450/6500, 1000 bales from Mirpurkhas at Rs 6475/6500, 1600 bales from Hyderabad at Rs 6475/6500, 1000 bales from Kotri at Rs 6500, 3000 bales from Shahdadpur, 2000 bales from Tando Adam, 200 bales from Sinjoro, 200 bales from Khadro, 200 bales from Moro all done at the same rate, 400 bales from Burewala at Rs 6675/6700, 800 bales from Mianchano at Rs 6675/6700, 400 bales from Haroonabad, 500 bales from Vehari, 400 bales from Gojra, 200 bales from Sahiwal, 400 bales from Chichawatni and 600 bales from Khanewal all were sold at Rs 6700, they said.