August 25, 2019

Forecast of more rains pushes cotton prices higher.

Forecast of more rains in both Sindh and Punjab pushed the rates further higher on the cotton market on Saturday in the process of trading activity, dealers said.

The official spot rate was unchanged at Rs 8000, they added. In ready session, over 7000 bales of cotton changed hands between Rs 8000 and Rs 8400, they said. Rates of seed cotton per 40kg in Sindh were at Rs 3300-3600, in Punjab prices were at Rs 3500-4100, they said. In Balochistan, seed cotton prices were at Rs 3600-3700, they said.

 

In Sindh and Punjab, Binola prices per maund were at Rs 1500-1600, they said and adding that polyester fibre per kg rates were at Rs 187. According to market sources, predictions of more rains in the country forced mills to make new deals to meet their needs. Where as, cotton analyst, Naseem Usman said that in the late evening, prices started showing weakness following the escalation of trade war between US and China. He said that cotton business will come under the impact of US-China trade war.

 

Besides, other brokers said that phutti arrivals will improve as the Hindu women pickers, celebrating religious festival, will come back on their work. Adds Reuters: ICE cotton futures fell over 1% on Friday on fears of escalation in a trade spat between the United States and China after US President Donald Trump threatened to counter a new round of retaliatory tariffs from Beijing.

 

Cotton contracts for December fell 0.71 cent, or 1.20 %, at 58.23 cents per lb at 01:43 pm EDT (1743 GMT). Total futures market volume rose by 511 to 17,439 lots. Data showed total open interest gained 528 to 216,481 contracts in the previous session.

 

Following deals were reported: 1000 bales of cotton from Shahdadpur at Rs 8000/8050, 2200 bales from Tando Adam at Rs 8000/8100, 400 bales from Mirpurkhas at Rs 8000, 600 bales from Nawabshah at Rs 8000/8050, 800 bales from Khanewal at Rs 8325/8400, 600 bales from Mian Channu at Rs 8325/8350, 600 bales from Pak Pattan at Rs 8200, 400 bales from Burewala at Rs 8100, 400 bales from Chichawatni at Rs 8100 and 200 bales from Hasilpur at Rs 8075, they said.