Cotton market: prices resist fall on strong mill buying
December 08, 2012
Prices showed firmness on the cotton market on Friday as some leading mills did finer type buying because rates were matching with their psychoological levels, dealers said Official spot rate was unchanged at Rs 5,900, they said. Over, 22,000 bales of cotton finalised between Rs 5300 and Rs 6000, they said.
Prices of seedcotton (phutti) in Sindh were unchanged at Rs 2400-2650, in Punjab, rates were also unchanged at Rs 2600-2750, they said. Cotton analyst, Naseem Usman said that the prices may not fall sharply due to fresh buying my mills, other factor ginners’ were disturb after report of rise in cotton crop during the current season. Yarn demand by China and other countries, is causing a steadier trend in the local prices, and mixed report about the size of cotton may also bring stability in the rates of cotton in the coming days, they said. According to the Reuters, the US cotton futures rose almost one percent on Thursday on low volume on signs of a pick up in buying interest after US data revealed the largest weekly sales in almost five months.
Net upland sales in the week to November 29 jumped 38 percent to 415,700 running bales from the prior week, with over 60 percent heading to China, the world’s largest producer and consumer of fibers. That is the highest since mid-June and the biggest for the 2012/13 marketing year so far. The season started on August 1. The most-active March contract on ICE Futures US settled up 0.51 cent, or 0.70 percent, at 73.55 cents per lb, in the middle of the day’s trading range of 72.85-73.95 cents. Trading volumes were well below average, with just under 10,000 March lots changing hands on the day.
The following deals were reported: 400 bales from Mirpurkhas at Rs 5300, 1200 bales from Sanghar at Rs 5500-5650, 1000 bales from Khairpur at Rs 5950, 1400 bales from Upper Sindh at Rs 5950-5975, 100 bales from Sillanwali at Rs 5800, 200 bales from Bakhar at Rs 5800, 1800 bales from Vehari at Rs 5850/5900, 400 bales from Liaquatpur at Rs 5850, 2200 bales from Haroonabad at Rs 5850-5900, 400 bales from Alipur at Rs 5850, 400 bales from Shujabad at Rs 5850, 800 bales from Lodhran at Rs 5850, 400 bales from Burewala at Rs 5900, 2000 bales from Rahimyar Khan at Rs 5900/5950, 400 bales from Sadiqabad at Rs 5900/5950, 400 bales from Chistian at Rs 5900, 600 bales from Dera Ghazi Khan at Rs 5900/5950, 400 bales from Yazman Mandi at Rs 5900, 400 bales from Fort Abbas at Rs 5900, 2000 bales from Layyah at Rs 5900, 600 bales from Bahwalpur at Rs 5900, 400 bales from Kabbirwala at Rs 5950, 2000 bales from Khanewal at Rs 5950, 600 bales from Rajanpur at Rs 5950, 400 bales from Mian Chano at Rs 6000, 800 bales from Mianwali at Rs 6000 and 400 bales from Fazilpur at Rs 6000.