A few deals finalised on the cotton market on Thursday as the ginners were not keen to make new deals because rates were not matching with their psychological levels, dealers said. The official spot rate extended winning ground for the second day, picking up more Rs 50 to Rs 6850, they said.
In the ready session, approximately 400 bales of cotton changed hands at Rs 7075, they said. Market sources said that the ginners showed little interest in fresh selling because they have limited stock of fine quality. Cotton analyst, Naseem Usman said that since the sowing started, the growers were demanding support price for seed cotton at Rs 3000 per 40kg. But despite, completion of 70 percent of sowing, not a single word came from the government, other experts said.
Whereas, the Punjab Agriculture Department (PAD) has advised the cotton growers to complete their sowing till May 20 in order to get good per acre yield and those who have completed their sowing should irrigate their fields with proper intervals and ensure balanced use of fertilizer. Besides, it has also been advised to carry out pest scouting on regular basis to save the crop from sucking pests.
Adds Reuters: ICE cotton futures fell on Wednesday on expectations of a bearish weekly export sales report from the US Department of Agriculture on Thursday. The first month July cotton contract on ICE Futures US closed limit down on Tuesday on a technical sell-off and speculator liquidation after cotton hit near three-year highs on Monday.
The July cotton contract on ICE Futures US settled down 1.15 cent, or 1.41 percent, at 80.17 cents per lb. It traded within a range of 79.63 and 83.04 cents a lb. Total futures market volume fell by 8,760 to 36,570 lots. Data showed total open interest gained 2,178 to 264,211 contracts in the previous session. The following deals reported: 200 bales from Khanpur at Rs 7075 and same figure from Feroza at the same rate, they said.