September 13, 2018

Trade activity rises on cotton market.

Renewed buying by mills helped volume of business to expand ground on the cotton market on Wednesday in the process of trading activity, dealers said.

The official spot rate was unchanged at Rs 8300, they added. Prices of seed cotton in Sindh came down by Rs 100-200 to Rs 3700-3800, in the Punjab rates followed the same pattern, sliding Rs 100 to Rs 3600-3800, and in Balochistan, prices of seed cotton were at Rs 3800-3900, they said.

 

In ready session, over 24,000 bales of cotton finalised between Rs 8275-8500, they said. Cotton analyst, Naseem Usman said that during the day, mills indulged in fresh buying of quality cotton to replenish their stock. It was interesting to note that rates fell slightly just after the Cotton Crop Assessment Committee (CCAC) has revised downward cotton production target by around 25 percent i.e. to 10.847 million bales against the initial target of 14.37 million bales set for the current season 2018-19, after missing the sowing target by over 8 percent.

 

Other brokers observed that in the late evening prices started showing weakness, instead of increasing following the downward revision by the CCAC. How the market reacts to the downward revision, it depends on demand and supply position of the cotton, they said. Cotton prices were mixed in the international market, they said.

 

The following deals reported: 2200 bales of cotton from Shahdadpur at Rs 8300-8350, 2400 bales from Tando Adam at the same rate, 2000 bales from Sanghar at Rs 8300/8350, 1400 bales from Mirpurkhas at Rs 8275-8325, 1200 bales from Hyderabad at Rs 8350-8375, 1000 bales from Shahpur Chakar at Rs 8300-8350, 600 bales from Bandi at Rs 8300, same figure from Sinjoro at Rs 8350, 3000 bales from Nawabshah at Rs 8300/8350, 600 bales from Chup Chani at Rs 8300, 1400 bales from Saleh Pat at Rs 8400/8450, 2000 bales from Ahmedpur at Rs 8500, 400 bales from Rahim Yar Khan at Rs 8450, same figure from Bahawalpur at Rs 8425, 600 bales from Vehari at Rs 8375-8425, 200 bales from Lodhran at Rs 8400, same figure from Pir Mehal at the same rate, same number from Chichawatni at the same price, same number from Chistian at the same rate, 400 bales from Burewala at Rs 8375-8390, 200 bales from Donga Bonga at Rs 8400 and same figure from Shadan Lund at the same price, they said.