Source: Business Recorder

RECORDER REPORT

November 21, 2019

KARACHI: Firmness prevailed on the cotton market on Wednesday in the process of moderate trading activity, dealers said. The official spot rate was unchanged at Rs 9000, they added. In ready session, about 13,000 bales of cotton changed hands between Rs 7900-9250, they said.

Rates of seed cotton per 40kg in Sindh were lower at Rs 2600-4300 and in the Punjab prices were down at Rs 3500-4400, they said. In Balochistan, seed cotton prices were at Rs 3500-4300, they said. In Sindh, Binola prices per maund were higher at Rs 1400-1750 and in Punjab rates were up at Rs 1600-1800, they said and adding that polyester fibre shed Rs 2 to Rs 181.

Market sources said that mills continued buying of cotton to cover their requirements. Mills’ buying helping rates to hold present levels, they said and adding that prices may not fall sharply in the near future. Cotton analyst, Naseem Usman said that cotton demand is not improving in the international markets, so that prices are not fluctuating sharply in local and global markets, as well.

Adds Reuters: ICE cotton futures extended losses for the second straight session on Tuesday, falling nearly 1%, as investors continued liquidating on expectations of excess supply in the market.

Cotton contracts for March fell 0.57 cent, or 0.86% to 65.40 cents per lb by 01:10 p.m. EST (1810 GMT), trading within a range of 65.33 to 66.06 cents per lb. Total futures market volume fell by 15,241 to 23,273 lots. Data showed total open interest fell 637 to 226,762 contracts in the previous session. (Source: Business Recorder)