Prices declined further on the cotton market last week as seed cotton arrivals showed more improvement due to a favourable weather, dealers said. The official spot rate lost more Rs 50 to Rs 6,000, they added. The prices of seed cotton in Sindh and Punjab were at Rs 3200 and Rs 3250, they said.
In the ready session, about 800 bales of cotton changed hands between Rs 6150-6200, they said.
Market sources said that leading mills and spinners were on the sidelines as they were trying to observe the current position in the absence of gas and power supply.
The latest negative factors, which dominating these days are continued decline in the NY cotton futures and slow buying by mills and spinners, they said. The mills have already stuff due to stoppage of operation following the electricity shortage.
Further more according to Reuters, Cotton futures hit a two-year low on Thursday, falling for an eighth straight session after weak appetite for risk in most commodity markets compounded already negative sentiment for cotton ahead of a US government crop report. Gold, Brent crude oil, corn and coffee were among commodities that closed lower for the day on factors ranging from Portugal’s banking worries to supply-demand concerns.
In cotton, players were bracing for the 2014/15 crop outlook report that was expected to boost supply prospects in the United States, the world’s top exporter of the fibre.
The following deals were reported: 200 bales of cotton from Sahiwal sold at Rs 6150, same figure from Burewala, same number of bales from Haroonabad at the same rate and equal number from Chichawatni at Rs 6200, dealers said.
