Lacklustre business activity was witnessed on the cotton market on Saturday as main spinners kept on the sidelines owing to less buying interest, dealers said. The official spot rate was unchanged at Rs 6700, they said. In the ready session, not a single deal reported till our going to press, they said. In Sindh, seed cotton prices were available at Rs 3200-3300 per 40 kg, they said.
Market sources said that arrivals of seed cotton gained momentum with gradual pace, if arrivals pick up prices may stay firm or decline slightly. They hope favourable weather likely to help in getting production target for the current season. Cotton analyst, Naseem Usman said that since arrivals of seed cotton started, prices shed Rs 500 in the week.
Other experts said that farmers and growers were disappointed owing to agriculture policies by the government. Textile sector is facing a lot of problems due to lack of incentives, they added. They said that the government should impose duty on cotton import without any delay. Local mills and spinners must take interest in domestic production instead of keeping on import of cotton, this factor would encourage local ginners and farmers and stabilise rate as well in the local market.
Adds Reuters: ICE cotton futures on Friday fell to their lowest in about six months as speculators liquidated after the natural fibre broke below a psychological level amid options expiry. Cotton contracts for December settled down 0.11 cent, or 0.16 percent, at 69.36 cents per lb. It traded within a range of 68.58 and 69.95 cents a lb. Total futures market volume fell by 21,193 to 38,967 lots. Data showed total open interest fell 934 to 232,242 contracts in the previous session.