November 13, 2019

Cotton market needy mills indulge in panic buying.

Most of the leading mills indulged in panic buying on the cotton market on Tuesday in the process of hectic trading session, dealers said. 

The official spot rate was down by Rs 100 to Rs 9200, they added. In ready session, over 23,000 bales of cotton changed hands between Rs 8500-9450, they said.

 

Rates of seed cotton per 40kg in Sindh fell sharply at Rs 3000-4250 and in the Punjab prices were at Rs 3800-4600, they said. In Balochistan, seed cotton prices were at Rs 4200-4700, they said. In Sindh, Binola prices per maund were at Rs 1400-1700 and in Punjab rates were at Rs 1550-1750, they said and adding that polyester fibre was down by Rs 2 to Rs 183.

 

According to the market sources, most of mills, who were on the sidelines due to quality factor, indulged in forward buying of lint cotton to replenish their stock. Cotton analyst, Naseem Usman said that short supply of fine quality and predictions of more rains in the cotton belt propelled them to make renewed buying of cotton. It is interesting to note that under the circumstances, rates should go up instead of coming down, other brokers said.

 

Adds Reuters: ICE cotton futures eased on Monday as escalating violence in Hong Kong and US-China trade tensions weighed on investor sentiment, while a positive supply-demand report last week provided some support to the natural fibre. Cotton contracts for December fell 0.42 cent, or 0.65%, to 64.30 cents per lb by 1:10 p.m. EST (1810 GMT), trading within a range of 63.73 to 64.85 cents per lb.

 

Total futures market volume fell by 19,467 to 53,212 lots. Data showed total open interest fell 7,206 to 239,068 contracts in the previous session.

 

The following deals reported: 800 bales of cotton from Ghotki at Rs 9325/9400, 400 bales from Khanpur Mehar at Rs 9350, 600 bales from Mirpur Mathelo at Rs 9300, 400 bales from Pano Aqil at Rs 9400, 1600 bales from Khairpur at Rs 8800, 2800 bales from Rahim Yar Khan at Rs 9400, 1600 bales from Sadiqabad at Rs 9400/9450, 400 bales from Liaquatpur at Rs 9200, 1200 bales from Shuajabad at Rs 9150/9200, 3800 bales from Yazman Mandi at Rs 9050/9200, 1000 bales from Bahawalpur at Rs 9000, 1600 bales from Ahmedpur East at Rs 8900/9000, 2000 bales from Rajanpur at Rs 9000, 400 bales from Faqeerwali at Rs 9000, 600 bales from Fort Abbas at Rs 9000, 400 bales from Tanliwala at Rs 9000, 800 bales from Donga Bonga at Rs 8975, 400 bales from Bahawal Nagar at Rs 8800/8900, 800 bales from Hasilpur at Rs 8800 and 400 bales from Jahanian at Rs 8500, they said.