July 26, 2019

Strong buying by mills persists on cotton market.

Strong mills' buying persisted on the cotton market on Thursday in the process of trading activity, dealers said. 

The official spot rate was unchanged at Rs 8650, they added. In ready session, about 10,000 bales of cotton changed hands between Rs 8700-8800, they said. Rates of seed cotton per 40kg in both Sindh and Punjab were at Rs 3800-4100, they said.

 

In Balochistan, seed cotton prices were at Rs 4100-4150, they said. In Sindh and Punjab, Binola prices per maund were up by Rs 50 to Rs 1550-1600, they said and adding that polyester fibre per kg rates were at Rs 203 due to lack of buying interest, they said. According to the market sources, the mills were confused about the availability of cotton quality, so that presently, they were trying to replenish their stock.

 

Most of them were facing financial problem, but despite this continued buying to meet their urgent needs.

 

Cotton analyst, Naseem Usman said that the ginners, who have already sold their stock, were not willingly ready to sell more as they not enough stock to meet demand at daily basis.

 

Adds Reuters: ICE cotton futures rose nearly 1% on Wednesday to their highest in two weeks on renewed hopes that China and the United States could take steps to resolve their trade war when negotiators meet face-to-face next week.

 

The most-active cotton contract on ICE Futures US, the second-month December contract, settled up 0.59 cent, or 0.93%, at 64.32 cents per lb.

 

Total futures market volume rose by 1,457 to 16,369 lots. Data showed total open interest fell 1,365 to 196,611 contracts in the previous session.

 

The following deals reported: 2400 bales of cotton from Tando Adam at Rs 8700, 1200 bales from Shahdadpur, 800 bales from Mirpurkhas, 1400 bales from Sanghar, 800 bales from Hyderabad, 400 bales from Kotri all done at the same rate, 1600 bales from Chichawatni at Rs 8775/8800, 600 bales from Vehari at Rs 8800, 200 bales from Samandri at Rs 8800, 400 bales from Hasilpur at Rs 8750/8800, 400 bales from Khanewal at Rs 8750 and 400 bales from Haroonabad at Rs 8750, they said.