Cotton market: prices slip on strong fresh demand by mills
December 09, 2012
Easier trend was seen on the cotton market on Saturday amid falling demand by mills in the process of trading, dealers said. Official spot rate was lower by Rs 50 to Rs 5,850, 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.
Some brokers said that prices were soft amid modest demand by mills, on the other hand, the ginners were worried about decline in rates as the Pakistan Cotton Ginners Association (PCGA) appealed the government to urged the mills to stop import cotton from other countries, they said. Cotton analyst, Naseem Usman said that local stuff is losing value due to import of cotton, the government must intervene in the matter to bring stability in the prices.
According to the Reuters, the US cotton futures rose for a third straight session on Friday before paring gains after hitting a three-week high on speculative buying triggered by the previous day’s buoyant export sales data. Futures volumes were low though as investors sat on the sidelines ahead of the US Department of Agriculture’s monthly crop update on Tuesday. Some analysts expect demand estimates to be increased for US fibres due to higher-than-expected export sales for the first four months of the 2012/13 season.
The most-active March contract on ICE Futures US settled up 0.24 cent, or 0.32 percent, at 73.79 cents per lb, just shy of its intraday high of 73.92 cents, its highest level since November 16. Even after recent gains, fibers ended the week down 0.5 percent, its smallest weekly move since early October.
The following deals were reported: 400 bales of cotton from Mirpurkhas at Rs 5250, 1000 bales from Shahdadpur at Rs 5350/5575, 400 bales from Sanghar at Rs 5600, 1600 bales from Upper Sindh at Rs 5950, 400 bales from Bakkhar at Rs 5800, 200 bales from Duniapur at Rs 5800, 200 bales from Maroot at Rs 5825, 200 bales from Hasilpur at Rs 5825, 400 bales from Burewala at Rs 5850, 400 bales from Khanewal at Rs 5850-5900, 600 bales from Dera Ghazi Khan at Rs 5875-5900, 200 bales from Tonsa Sharif at Rs 5850, 200 bales from Vehari at Rs 5850, 400 bales from Lodhran at Rs 5875, 200 bales from Shujabad at Rs 5875, 1400 bales from Layyah at Rs 5875/5900, 400 bales from Haroonabad at Rs 5900, 200 bales from Yazman Mandi at Rs 5900, 3000 bales from Rahimyarkhan at Rs 5900-5950 and 2000 bales from Sadiqabad at Rs 5900/5950, they said.