Present trend in rates attracted buyers on the cotton market on Wednesday, dealers said. The official spot rate was inert at Rs 6050, they said. In the ready session, over 27,000 bales of cotton changed hands between Rs 6050-6350, they said. In both Sindh and the Punjab, seed cotton prices were modestly lower by Rs 50 to Rs 2550-2750 as per 40 kg, they said.
According to market sources, mills and spinners were still active buyers due to sliding rates. In fact, buyers keen to cover their position as arrivals of seed cotton at season's peak, they added. Cotton analyst, Naseem Usman, attributed the fall in prices to better-than-likely production of cotton in most parts of growing areas.
In India, cotton production likely to increase by 20 percent during the current season, similarly, the USDA data is releasing positive reports about cotton production despite natural disasters, such as Hurricane Irma, other experts said.
Adds Reuters: ICE cotton futures fell over 4 percent and traded limit down on Tuesday after the US Department of Agriculture (USDA) raised its projections for US and global production for the 2017/18 crop year. The December cotton contact on ICE Futures fell 3.00 cent, or 4.16 percent, at 69.11 cents per lb as of 1226 EDT (1626 GMT).
The following deals reported: 2000 bales from Mirpurkhas at Rs 5950/6000, 1000 bales from Sinjoro at Rs 5950/6000, 2000 bales from Sanghar at Rs 6000, 800 bales from Hyderabad at Rs 6000/6025, 2600 bales from Tando Adam at Rs 6000/6050, 3000 bales from Shahdadpur at Rs 6000/6050, 1000 bales from Hala at Rs 6050, 200 bales from Daur at Rs 6090, 1000 bales from Nawab Shah at Rs 6100, 800 bales from Moro at Rs 6100, 400 bales from Kazi Ahmed at Rs 6100, 400 bales from Buchari at Rs 6100, 400 bales from Bandhi at Rs 6100, 2000 bales from Khairpur at Rs 6100/6125, 1000 bales from Layyah at Rs 6100/6175, 400 bales from Chistian at Rs 6125, 400 bales from Bakhar at Rs 6125, 400 bales from Gojra at Rs 6150, 800 bales from Vehari at Rs 6150/6175, 1200 bales from Hasilpur at Rs 6150/6200, 600 bales from Mianwali at Rs 6175/6200, 800 bales from Chichawatni at Rs 6175/6200, 1400 bales from Burewala at Rs 6175/6200, 400 bales from Ahmedpur at Rs 6200, 400 bales from Dera Ghazi Khan at Rs 6200, 200 bales from Mohammadpur Dewan at Rs 6200, 200 bales from Shair Sultan at Rs 6200 and 400 bales from Alipur at Rs 6200, dealers said.