A wait-and-see mood prevailed on the cotton market on Tuesday amid announcement of package to boost exports, dealers said. The official spot rate was unchanged at Rs 6350, dealers said. In Sindh, seed cotton prices were unmoved at Rs 2800-3350, they said. In Punjab, phutti rates held the overnight levels at Rs 2800 and Rs 3550, as per 40 kg, they added.
In the ready session, around 3,000 bales of cotton changed hands between Rs 6150-6625, they said. They said that trading activity could not gain momentum as ginners remained on the sideline in expectations of rise in profit. In the meantime, the spinners were keen to lay hands over the offer of big deals but they failed to do so in the absence of sellers' interest.
Cotton analyst, Naseem Usman said that wait-and-see mood prevailed during announcement of a major package of 'export-led growth' by the Prime Minister Nawaz Sharif, the purpose is to enhance exports in the coming days. In the package, other experts said that the government took a number of initiatives for increase of exports and mentioned zero rating of five major export sectors, refund of Sales Tax up till 30 June 2016, besides lowering of electricity tariffs and largest ever package for the agriculture sector. They observed that there is a positive change in the package for the textile sector as today the country has achieved economic stability and days of electricity load-shedding were now over.
Reuters adds: ICE cotton futures fell over 1 percent on Monday, the biggest one-day percentage drop in three weeks, as investors liquidated long positions ahead of the US government's world agriculture supply and demand (WASDE) report due later this week.
The March cotton contract on ICE Futures US fell 1.35 percent on Monday, the biggest daily percentage fall since December 19. The March cotton contract on ICE Futures US settled down 1 cent, or 1.35 percent, the biggest one-day percentage drop since December 19, at 72.99 cents per lb. It traded within a range of 72.81 and 74.18 cents a lb. The following deals reported: 200 bales from Mirpurkhas sold at Rs 6200, 400 bales from Mianwali at Rs 6150, 800 bales from Khanewal at Rs 6500, 200 bales from Kachiwala at Rs 6500, 400 bales from Fort Abbas at Rs 6550, 600 bales from Ahmedpur at Rs 6550 and 400 bales from Vehari at Rs 6625, dealers said.