Spot rate down on cotton market amid hovering confusions over Indian next move

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From International Desk - Special Reports

Official spot rate was lower by Rs 100 on the cotton market on Wednesday amid rising speculations about the next move by the Indian government and textile ministry, dealers said.

The official spot rate was down by Rs 100 to Rs 5,200, they said.

Prices of seedcotton in Sindh were at Rs 1700-2200 and in the Punjab rates were at Rs 1800-2500, they said.

In ready dealings, slight improvement was seen as over 7000 bales of cotton changed hands at Rs 3600-5750, they said.

Under the circumstances, local cotton traders were confused and kept on the sidelines during the session, Chairman Karachi Brokers' Association, Naseem Usman said and adding that trading activity may improve in the coming days after reports of phutti arrivals figure, which may be short against the last arrival figures.In the meantime, in some parts of Punjab cotton sowing has started, he said and adding that in Sindh, the growers delayed cotton sowing owing to winter.

Other dealers said that Indian move has failed to bring any change in present change as textile exporters are worried about the short quantity because of high debt cost, cause of loss of big foreign exchange in the country.

They said that we hope the government to take serious notice to save the foreign exchange.According to a report that Indian cotton farmers are holding back their latest crop in the hope of higher government prices after domestic levels slid 50 percent in the last year and now a ban on exports threatens to cut revenues further.

On Tuesday, the NY cotton futures settled slightly firmer as it ended a five-day losing streak on trade and possible consumer buying, analysts said.The benchmark May contract on ICE Futures US rose 0.04 cent to finish at 88.04 cents per lb, dealing from 87.94 to 88.93 cents.

It was an inside day within Monday's 87.01 to 89.16 cents band.

Volume traded Tuesday reached about 17,000 lots, about 30 percent under the 30-day norm, Thomson Reuters data showed, adds Reuters.

The following deals were reported: 130 bales of cotton from Sultanabad (low quality) at Rs 3600, 600 bales of cotton from Kazi Ahmed at Rs 4600-4700, 400 bales of cotton from Rohri at Rs 5350, 400 bales of cotton from Kassowal (low quality) at Rs 3500, 400 bales of cotton from Khanewal at Rs 4850, 200 bales of cotton from Marot at Rs 5000, 400 bales of cotton from Lodhran at Rs 5000, 400 bales of cotton from Hasil Pur at Rs 5100, 600 bales of cotton from Fort Abbas at Rs 5200/5300, 400 bales of cotton from Bahawal Pur at Rs 5300, 200 bales of cotton from Kotla Moosa at Rs 5450, 400 bales of cotton from Uch Sharif at Rs 5500, 1600 bales of cotton from Rahim Yar Khan at Rs 5500, 400 bales of cotton from Fazil Pur at Rs 5750, they said.

Courtesy: Business Recorder

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