Rates continued sliding trend on the second day on the cotton market on Saturday in the process of heavy selling by ginners, dealers said. The official spot rate lost Rs 100 to Rs 6300, they said. In the ready session over 17,000 bales of cotton changed hands between Rs 6200-6500, they said. In both Sindh and Punjab, seed cotton rates (inferior types) were lower by Rs 100 at Rs 2900-3000 per 40 kg, they said. According to the market sources, The ginners, who have enough stock, came under pressure and started selling in a panic way, which cause sharp decline in prices within three days.
Other experts said that cotton production may be improved against the last year for the current season. Cotton analyst, Naseem Usman said that prices may stop declining in the coming days, because of holiday. The buyers are likely to take interest in fresh purchasing ahead of Eid holidays. Adds Reuters: ICE cotton futures rebounded slightly on Friday after hitting a three-week low earlier in the session on the back of a bearish supply report from the US Department of Agriculture.
Cotton contracts for December settled up 0.14 cent, or 0.21 percent, at 68.25 cents per lb. It traded within a range of 67.75 and 69.15 cents a lb. Earlier in the day, prices hit their lowest since July 21 at 67.75 cents. The contract closed limit down and also registered its worst intraday decline on Thursday. Total futures market volume fell by 16,323 to 27,613 lots. Data showed total open interest gained 41 to 221,587 contracts in the previous session.
The following deals reported: 600 bales from Shahpur Chakar at Rs 6200-6300, 1600 bales from Kotri, 2200 bales from Hyderabad, 2000 bales from Sanghar all done at the same rate, 2200 bales from Mirpurkhas, 2600 bales from Shahdadpur, all finalise at the same rate, 400 bales from Maqsoodo at Rs 6250 and same figure from Jhole done at the same figure, same number from Winder at Rs 6250-6300, 2000 bales from Tando Adam at Rs 6250-6350, 400 bales from Rajanpur at Rs 6400, same figure from Burewala at Rs 6400-6500, 200 bales from Gojra at Rs 6425, same number from Haroonabad at Rs 6500, same figure from Vehari, 200 bales from Mian Chano and same figure from Chichawatni all done at the same levels, they said.