Prices continued to slide on the cotton market on Wednesday as seed cotton supply improved in the process of trading, dealers said. The official spot rate shed further Rs 50 to Rs 6200, they said. In the ready session over 22,000 bales of cotton changed hands between Rs 6100-6350, they said. In both Sindh and Punjab, seed cotton rates were lower by Rs 100 at Rs 2600-2900 per 40 kg, they said. Commenting on brisk activity, market sources said that mills and spinners indulged in forward buying ahead of Eid-ul-Azha holidays. Cotton analyst, Naseem Usman said that arrivals picking up with better quality, which is helping buyers to take part in fresh purchasing.
Reuters adds: ICE cotton fell to a near one-month low on Tuesday after data from the US Department of Agriculture (USDA) showed an improvement in crop conditions in the US amid higher production expectations. Cotton contracts for December settled down 0.6 cents, or 0.87%, at 67.16 cents per lb. They traded within a range of 67.08 and 67.95 cents a lb. Prices hit their lowest since July 18 at 67.08 cents.
Total futures market volume rose by 1,371 to 18,583 lots. Data showed total open interest fell 932 to 218,278 contracts in the previous session. The following deals reported: 2400 bales from Kotri at Rs 6100/6200, 1400 bales from Mirpurkhas, 1400 bales from Hyderabad, 2000 bales from Sanghar, 1600 bales from Shahdadpur, 2600 bales from Tando Adam all done at the same rates, 200 bales from Maqsoodo at Rs 6150, 200 bales from Hala at Rs 6150, 600 bales from Kot Ghulam Mohammad at Rs 6150/6200, 600 bales from Sinjoro at Rs 6150/6200, 600 bales from Bakahar at Rs 6200, 200 bales from Hasilpur at Rs 6200, 200 bales from Sahiwal at Rs 6250, 1200 bales from Vehari at Rs 6275/6300, 200 bales from Chistian at Rs 6300, 200 bales from Jahanian, 200 bales from Arifwala, 600 bales from Haroonabad, 200 bales from Bahawal Nagar all were finalised at the same prices, 1600 bales from Chichawatni, 1400 bales from Burewala, 600 bales from Samundri all were sold at Rs 6300/6350 and 200 bales from Mongi Bangla at Rs 6350, they said.