Steady trend on cotton market amid improved demand by mills, exporters

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From International Desk - Special Reports

Trading activity improved on the cotton market on Wednesday as prices showed firmness due to decrease in unsold stock of fine quality, dealers said.

The official spot rate was unchanged at Rs 5400, they added.

Prices of seedcotton in Sindh were inert at Rs 1700-2300, respectively, and in the Punjab rates were at Rs 2000-2700, they said.

In the daily business, over, 6000 bales of cotton changed hands between Rs 4500-5800, they said.

Market sources said that cotton prices were firm due to decline in the unsold stock and persistent demand may cause not sharp fall in the rates.

The Pakistan Cotton Ginners Association (PCGA) fortnightly reports issued till March 31, showing an increase in figure at 14.67 million bales, brokers said and adding that during the current season, country is going to get better-than-expected crop despite huge losses by flood after monsoon rains, particularly in Sindh cotton belt.According to the Reuters, the NY cotton futures settled easier on Tuesday on sales by small speculators as market talk began turning to deliveries in the spot contract, which start later in the month, analysts said.

The benchmark May contract on ICE Futures US shed 0.48 cent to finish at 92.64 cents per lb, trading from 93.80 to 92.41.

New-crop December declined 0.21 cent to end at 90.54 cents.

Volume traded on Tuesday was around 22,272 lots, slightly under the 30-day norm, Thomson Reuters data showed.

The following deals were reported: 400 bales of cotton from Nawab Shah at Rs 4525, 200 bales of cotton from Hala at Rs 4525, 400 Rasoolabad at Rs 5100, 400 bales of cotton from Rohri at Rs 5400, 400 bales of cotton from Khair Pur at Rs 5500, 400 bales of cotton from Lodhran at Rs 5300, 200 bales of cotton from Amrot at Rs 5300, 400 bales of cotton from Sadiqabad at Rs 5400, 200 bales of cotton from Kotla Moosa at Rs 5500, 400 bales of cotton from Ahmed Pur East at Rs 5500, 200 bales of cotton from Hasil Pur at Rs 5500, 400 bales of cotton from Rahim Yar Khan at Rs 5500, 400 Rajan Pur at Rs 5600, 200 bales of cotton from Faqir Wali at Rs 5600, 600 bales of cotton from Haroonabad at Rs 5600, 400 bales of cotton from Dera Ghazi Khan at Rs 5650, 400 bales of cotton from Bahawal Pur (credit) at Rs 5800, 200 bales of cotton from Head Bakani (Credit) at Rs 5800, they said.

Courtesy: Business Recorder

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