July 27, 2019

Fears of more rains and forward buying pushes cotton rates up.

Fears of further monsoon rains in cotton belt and forward buying pushed the rates higher on the cotton market on Friday, dealers said.

The official spot rate after a little pause, gained Rs 50 to Rs 8700, they added. In ready session, over 10,000 bales of cotton changed hands between Rs 8675-8800, 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. Market sources said that mills and spinners indulged in forward buying of lint ahead of Eid-u-Azha holidays.

 

Other reason behind the hectic trading is short supply of fine lint against the high demand, we can see a wide gap between demand and supply, they observed. Cotton analyst, Naseem Usman said that the ginners, who have already sold most of their old stock, were trying to help in meeting the demand and supply position in the market.

 

Adds Reuters: ICE cotton futures inched down on Thursday, snapping a four-session gaining streak, as improved weekly export sales numbers were offset by lack of buying from China. The most-active cotton contract on ICE Futures US, the second-month December contract, settled down 0.13 cent, or 0.20%, at 64.19 cents per lb. It traded within a range of 63.97 and 64.68 cents a lb.

 

Total futures market volume fell by 4,121 to 12,359 lots. Data showed total open interest fell 598 to 196,013 contracts in the previous session. In other parts of world, cotton prices were almost mixed in the process of trading activity. The following deals reported: 2000 bales of cotton from Tando Adam at Rs 8700/8800, 1800 bales from Sanghar at Rs 8675/8750, 1200 bales from Shahdadpur at Rs 8700/8750, 800 bales from Mirpurkhas at Rs 8700/8750, 800 bales from Hyderabad at Rs 8700, 1200 bales from Chichawatni at Rs 8800, 600 bales from Haroonabad, 200 bales from Khanewal, 400 bales from Burewala, 200 bales from Gojra, 500 bales from Mian Channu, 200 bales from Muridwala, 200 bales from Pir Mehal all were finalised at Rs 8800 and 200 bales from Vehari at Rs 8775, they said.