March 29, 2019

Cotton spot rate rises on tight supply.

Cautious business activity was witness on the cotton market on Thursday as the ginners showed little reluctance in fresh selling, dealers said.

The official spot rate was higher by Rs 50 to Rs 8,650, they added. In the ready session, around 2000 bales of cotton changed hands between Rs 8800-8900, they said. Prices of seed cotton in Sindh were at Rs 3000-3500, in Punjab seed cotton prices at Rs 3000-3600 and in Balochistan prices were at Rs 3200-3500, they said.

 

Market sources said that some leading mills kept on the sidelines because the ginners were not ready to oblige them at the present rates. Cotton analyst Naseem Usman said that the stock of fine quality is diminishing, so the mills adopted wait-and-see position just to know about the latest developments. Rise in dollar demand versus the rupee was also a solid reason behind the ginners' changed attitudes, other experts said. Prices fell in Indian and Chinese markets, brokers said.

 

Adds Reuters: ICE cotton futures fell more than one percent on Wednesday as investors looked toward an annual USDA report due on Friday that is expected to show an uptick in planted acres, while a stronger dollar also pressured the market. The front-month cotton contract on ICE Futures US, settled down 0.94 cent, or 1.21 percent, at 76.95 cents per lb.

 

Total futures market volume rose by 3,068 to 32,075 lots. Data showed total open interest gained 1,816 to 226,594 contracts in the previous session. The following deals reported: 1413 bales of cotton from Ghotki at Rs 8900, 400 bales from Rahim Yar Khan at Rs 8800, they said.