Subdued business on cotton market

Trading activity came down on the cotton market on Saturday as most of the leading buyers were on the sidelines due to less buying interest, dealers said. The official spot rate was lower by Rs 100 to Rs 8,550, they added. Prices of seed cotton in Sindh were at Rs 3600-4000, in the Punjab seed cotton prices were at Rs 3600-4000 and in Balochistan, rates of seed cotton were at Rs 3800-4200, they said.

In the ready session, over 20,000 bales of cotton changed hands between Rs 8300-8850, they said. Cotton analyst, Naseem Usman said that many were expecting that the volume of business may not gain momentum in the short-term. Market sources said that mills were on the sidelines due to increasing tensions over fluctuations of dollar versus the rupee.

Besides, they also attributed the fall in prices to cautious approach by mills, forced ginners and growers to cut down rates. Needy buyers were making deals to replenish their stock, brokers said and adding that recent decline was witnessed in the local cotton prices partly because of decline in the rates. New York cotton futures were higher while the prices were mixed in other parts of world, they said.

The following deals reported: 600 bales of cotton from Nawabshah at Rs 8300, 400 bales from Sakrand at Rs 8300, 1600 bales from Khairpur at Rs 8500/8575, 400 bales from Saleh Pat at Rs 8650/8700, 1000 bales from Rohri at Rs 8600/8650, 600 bales from Mirpur Mathelo at Rs 8800/8850, 400 bales from Khanpur Mehar at Rs 8800/8850, 800 bales from Ghotki at Rs 8850, 1200 bales from Fazilpur at Rs 8700/8750, 1200 bales from Rahim Yar Khan at Rs 8750, 1200 bales from Sadiqabad at Rs 8700/8750, 2600 bales from Rajanpur at Rs 8500/8750, 200 bales from Alipur at Rs 8700, 400 bales from D.G. Khan at Rs 8700, 1200 bales from Bahawalpur at Rs 8650/8700, 800 bales from Ahmedpur East at Rs 8600/8700, 800 bales from Marrot at Rs 8575/8650, 600 bales from Jalalpur at Rs 8550/8650, 800 bales from Haroonabad at Rs 8500/8550, 1800 bales from M. P. Deewan at Rs 8500 and 200 bales from Hasilpur at Rs 8500, they said.