Stable trend was witnessed on the cotton market on Saturday in the process of modest trading, dealers said. The official spot rate sustained overnight level at Rs 6200, they said. In the ready session around 2000 bales of cotton were sold at Rs 6400, they said. In Sindh, seed cotton rates were at Rs 3200-3250 per 40 kg, while in the Punjab, phutti prices were available at Rs 3100-3300, they said. Market sources said that recent monsoon rains, keeping rates firm and it likely to continue in the coming days.
They said that main leading buyers made cautious buying due to tight supply of cotton. Cotton analyst, Naseem Usman said that one percent customs duty on import of cotton will help stabilise rate in the coming days, besides, GST plus is also an adding factor behind the firm trend in the prices. Adds Reuters: ICE cotton futures inched up on Friday, supported by a weaker dollar and a jump in grains markets, after hitting a nearly three-week low early in the session. Cotton contracts for December settled up 0.21 cent, or 0.32 percent, at 66.58 cents per lb, after touching 66.28 cents, its lowest since June 26.
They reduced a bullish stance in cotton by 4,592 lots to 20,821 lots in the week to July 11, the data showed. That marked the smallest net long stance in the fiber in over a year. Total futures market volume fell by 4,568 to 14,651 lots. Data showed total open interest gained 3,021 to 214,759 contracts in the previous session. The following deals reported: 400 bales of cotton from Mirpurkhas sold at Rs 6400, 800 bales from Tando Adam, 400 bales from Hyderabad and 200 bales from Sanghar all done at the same level, they said.