July 13, 2018

Short supply pushes rates higher.

Short supply of fine quality pushed the rates further higher on the cotton market on Thursday in the process of trading, dealers said. 

The official spot rate resumed it's upward journey, picking up Rs 100 to Rs 8400, they added. Prices of seed cotton in Sindh were up by Rs 100 to Rs 3900-4150 in the Punjab, rates were at Rs 3700-4300, they said.


In ready session, over 3000 bales of cotton finalised between Rs 8600-Rs 8700, they said.


Market sources said that recent persistent increase in prices has worried spinners but is satisfactory for ginners and farmers. The spinners, who have not much stock of new crop are in a worrisome position, cotton analyst, Naseem Usman said.


After observing the latest trend in the market, marketmen said that rates will rise further in the coming days as prices usually on upward march. Furthermore, in 2010-11, cotton prices surged to all-time high level at Rs 14000 per maund, influenced by global market surge, they added.


Adds Reuters: ICE cotton futures slipped over 2 percent on Wednesday, to mark its biggest one-day percentage decline in three weeks, as trade tensions grew with the United States threatening 10 percent tariffs on $200 billion of imported Chinese goods.


The most active cotton contract on ICE Futures US, the second-month December contract, settled down 1.84 cent, or 2.13 percent, at 84.54 cents per lb, after rising for the past three sessions. The contract traded within a range of 84.34 and 86.3 cents a lb.


Following deals reported: nearly 1000 bales of cotton from Shahdadpur done at Rs 8625-8700, 1600 bales from Tando Adam at Rs 8600-8700, 600 bales from Sanghar finalised at the same rate and 200 bales from Vehari at Rs 8600, they added.