AGL 38.10 Decreased By ▼ -0.05 (-0.13%)
AIRLINK 129.15 Increased By ▲ 4.08 (3.26%)
BOP 7.85 Increased By ▲ 1.00 (14.6%)
CNERGY 4.68 Increased By ▲ 0.23 (5.17%)
DCL 8.51 Increased By ▲ 0.60 (7.59%)
DFML 39.04 Increased By ▲ 1.70 (4.55%)
DGKC 81.28 Increased By ▲ 3.51 (4.51%)
FCCL 32.77 Increased By ▲ 2.19 (7.16%)
FFBL 74.80 Increased By ▲ 5.94 (8.63%)
FFL 12.73 Increased By ▲ 0.87 (7.34%)
HUBC 109.29 Increased By ▲ 4.79 (4.58%)
HUMNL 13.90 Increased By ▲ 0.41 (3.04%)
KEL 5.10 Increased By ▲ 0.45 (9.68%)
KOSM 7.69 Increased By ▲ 0.52 (7.25%)
MLCF 38.65 Increased By ▲ 2.21 (6.06%)
NBP 72.38 Increased By ▲ 6.46 (9.8%)
OGDC 186.00 Increased By ▲ 6.47 (3.6%)
PAEL 25.30 Increased By ▲ 0.87 (3.56%)
PIBTL 7.40 Increased By ▲ 0.25 (3.5%)
PPL 151.75 Increased By ▲ 8.05 (5.6%)
PRL 25.39 Increased By ▲ 1.07 (4.4%)
PTC 17.30 Increased By ▲ 0.90 (5.49%)
SEARL 82.00 Increased By ▲ 3.43 (4.37%)
TELE 7.60 Increased By ▲ 0.38 (5.26%)
TOMCL 32.68 Increased By ▲ 0.71 (2.22%)
TPLP 8.43 Increased By ▲ 0.30 (3.69%)
TREET 16.75 Increased By ▲ 0.62 (3.84%)
TRG 55.80 Increased By ▲ 1.14 (2.09%)
UNITY 28.60 Increased By ▲ 1.10 (4%)
WTL 1.34 Increased By ▲ 0.05 (3.88%)
BR100 10,567 Increased By 477.8 (4.74%)
BR30 31,030 Increased By 1520.9 (5.15%)
KSE100 98,614 Increased By 4040.1 (4.27%)
KSE30 30,778 Increased By 1332.8 (4.53%)

Cotton futures closed higher Thursday on active short covering in July ahead of deliveries that begin on June 25, analysts said. The spot July cotton futures climbed the 3.00 cent daily limit to close at 78.09 cents per lb. The session low was 74.66 cents. The key December cotton contract on the ICE Futures US exchange rose 0.19 cent to finish at 70.60 cents per lb, dealing from 70.01 to 73.08 cents.
The spread between July and December is at its widest since June 2011, according to Thomson Reuters data. Volume traded on Thursday reached over 47,300 lots, almost double the 30-day norm, it said. Market participants said a large cotton trading house has put pressure on players holding short positions in July to exit those positions.
"They did not give the other side a chance to roll out and this is forcing those who are short in July to buy and cover their shorts," a long-time trader said. Trading is normally intense in the cotton market in the run-up to the first notice day for deliveries. The notice day for the July contract is on June 25 and most investors or speculators would want to avoid delivering cotton against the contracts.
The US Agriculture Department's weekly export sales report showed China bought 744,200 running bales (RBs, 500-lbs each) of upland cotton, some 94 percent of the total 795,700 RBs sold in the last week. Open interest in the cotton market, an indicator of investor interest, amounted to 195,136 lots as of June 13, ICE Futures US exchange data showed.

Copyright Reuters, 2012

Comments

Comments are closed.