Spot rates fall sharply on cotton market

Official spot rates fell sharply on the cotton market on Tuesday in the process of trading, dealers said. The official spot rate was down by Rs 100 to Rs 6050, they said. In ready session, over 20,000 bales of cotton changed hands between Rs 5925 and Rs 6225, they said. In Sindh, seed cotton prices were unchanged at Rs 2600-2800 and in Punjab rates were at Rs 2600-2900 as per 40 kg, they said. Commenting on falling trend in rates, cotton analyst, Naseem Usman said that arrivals of seed cotton increased and fears of damages from Hurricane in cotton producing areas shedding, bringing down prices.

Other brokers said that if cotton arrivals improved further, prices may show more weakness in days to come. Reuters adds: ICE cotton futures fell more than three percent on Monday on profit taking ahead of a monthly crop supply and demand report from the U.S. government which is expected to show a large natural fiber crop. Cotton contracts for December settled down 2.48 cent at 72.11 cents per lb. It traded within a range of 71.59 and 75.45 cents a lb. December prices slumped 3.32 percent, its biggest one-day percentage fall since the release of last month's WASDE report on August 10. Total futures market volume fell by 2,212 to 33,679 lots. Data showed total open interest gained 5,289 to 246,407 contracts in the previous session.

The following deals reported: 1400 bales of cotton from Mirpurkhas sold at Rs 5925/6100, 200 bales from Jhole at Rs 6000, 1200 bales from Kotri at Rs 6000/6050,1600 bales from Hyderabad at Rs 6000/6050, 2000 bales from Shahdadpur at Rs 6000/6075, 1800 bales from Sanghar at Rs 6000/6075, 2600 bales from Tando Adam at Rs 6050/6100, 1000 bales from Nawabshah at Rs 6100, 200 bales from Dulatpur at Rs 6100, 800 bales from Haroonabad at Rs 6200, 600 bales from Toba Tek Singh, 800 bales from Mongi Bangla, 1800 bales from Burewala, 800 bales from Hasilpur, 200 bales from Gaggo Mandi, 400 bales from Layyah all finalised at the same rates, 2200 bales from Vehari, 1200 bales from Alipur, 400 bales from Kabbirwali and 400 bales from Dera Ghazi Khan all sold at Rs 6225, dealers said.