Steadier trend was seen on the cotton market on Friday in the process
of modest trading, dealers said. The official spot rate was unchanged at
Rs 6,850, they added. Prices of seed cotton in Sindh per 40 kg were
inert at Rs 2500-3200, in Punjab, rates also retained overnight levels
at Rs 2500-3300, dealers said. In the ready session, over 600 bales of
cotton changed hands between Rs 6900-7000, dealers said.
Main participants were on the sidelines to observe the latest situation, cotton analyst, Naseem Usman said. Prices of local yarn are falling as buyers were taking interest in purchasing of Indian yarn. The value-added sector is in favour of import of yarn from Indian but the textile spinners were demanding tax on import, brokers said.
Reuters adds: cotton futures shot to their highest since August on Thursday on a late burst of buying as rumours circulated that China has issued new import quotas and strong export sales reinforced hopes that the US surplus will shrink more than many expected.
In its best daily performance since June last year, the benchmark May cotton contract on ICE Futures US closed up 2.85 cents, or 3.24 percent, at 90.71 cents a lb. Most of the day's gains and turnover were in the final hour of trade, in part due to technical buying after prices pierced the psychologically key 90-cent mark and short covering. Prices jumped to as high as 90.80 cents, its loftiest since August last year. Volumes were decent with over 23,000 lots of May contract changing hands. The following deals were reported: 200 bales from Haroonabad sold at Rs 6900 and 400 bales from Lodhran at Rs 7000, they said.
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