Moderate activity was seen on the cotton market on Saturday as mills came back to make new purchasing, resumption of activity caused stability in the rates, some brokers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 8,500, they said.
In Sindh and Punjab hutti price of low type was at Rs 2500 and that of superior type at Rs 3000, they said. In ready business nearly 3,500 bales of cotton changed hands between Rs 8000-8,600, they added. Some analysts said that mills started buying cotton as they are sure that prices of fine quality may not come down sharply, which is short in demand.
On the other hand, prices were matching with their psychological levels as ginners were ready to oblige them following the expectations of good cotton production in the next season, they said. In the meantime, there was no panic among the buyers and sellers mainly after the news in which, India is mulling to increase its exports in the coming days, they said.
On Friday the US cotton futures settled mixed as the market tried to find its footing after another sell-off in the commodities sector this week, analysts said. The key July cotton contract on ICE Futures US increased 0.85 cent to close at $1.4515 per lb, dealing from $1.4206 to $1.4849. On the week, the market is down 0.28 percent. The new-crop December cotton futures lost 3.58 cents or by three percent to finish at $1.1561 per lb.
Volume traded stood around 14,400 lots, almost two-thirds below the 30-day norm, Thomson Reuters preliminary data showed. The following deals were reported: 600 bales from Rahim Yar Khan sold at Rs 8000-8500, 600 bales from Shadan Lund at Rs 8200, 1100 bales from Khan Pur at Rs 8000, 400 bales from Bahawana at Rs 8000, 200 bales from Qaboola at Rs 8200, 200 bales from Hasil Pur at Rs 8500 and 200 bales from Kabir Wala at Rs 8600.