KARACHI : Prices were steady but trading activity was down on the cotton market on Wednesday ahead of holidays, dealers said. The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 9,200. Seed cotton prices in Sindh and Punjab continued slide, falling by Rs 100 to Rs 3,800-4,000, they said.
In ready business trading activity failed to retain overnight pace so, nearly 22,000 bales of cotton changed hands between Rs 8,800-9,500, they added. Market sources said that prices failed to maintain overnight levels due to falling demand, in fact they are busy in cautious purchasing and at the same time observing the fresh developments to make the deals on profit in the near future.
India’s next strategy regarding exports of cotton was not clear, which kept the buyers in grip of unforeseen fears, they said. On Wednesdat news appeared that India may decide on Monday about giving more time to cotton exporters to ship 5.5 million bales, Trade Secretary Rahul Khullar said.
India, the world’s second biggest producer and exporter of the fibre, had allowed the exports from November 1 to December 15. However, cotton exporters are likely to ship less than half the target, which could tighten the global supply situation. In the meantime many players in the market were expecting positive policy from India, which will definitely be beneficial for exporters and traders the world over, they said. The general trend in the market was low due to falling of trade the world over, they said. Most parts of the world are going to celebrate the New Year and this factor is dominating factor behind the shrinking of activity, they added.
On Tuesday the US cotton futures ended down for a second consecutive day, as prices extended a phase of consolidation from recent gains and buyers sided with caution in front of a government crop report due at the end of the week, brokers said.
The benchmark March cotton contract on ICE Futures US eased 0.06 cent to end at $1.3037 per lb, after moving from $1.2821 to $1.3425. Volume reached 22,600 lots by 3 pm EST (2000 GMT), about 37 percent below the 30-day average of 36,000 lots, Thomson Reuters preliminary data showed. Market players expect volumes to remain relatively low ahead of the monthly supply/demand report from the US Agriculture Department due out on Friday.
The following deals were reported: 1000 bales of cotton from Shahdad Pur sold at Rs 8900-9000, 1000 bales from Sanghar at Rs 8800-8900, 400 Mir Pur Khas at Rs 9000, 400 bales of cotton from Sakrand at Rs 9150, 1000 bales of cotton from Nawabshah at Rs 9150-9200, 800 bales of cotton from Khair Pur at Rs 9200, 1200 bales of cotton from Upper Sindh at Rs 9200-9500, 400 bales of cotton from Mian Channo at Rs 9000, 600 bales of cotton from Burewala at Rs 9000, 800 bales of cotton from Haroonabad at Rs 9000, 200 bales of cotton from Chistian at Rs 9000, 200 bales of cotton from Vehari at Rs 9000, 200 bales of cotton from Jalal Pur at Rs 9000, 200 bales of cotton from Pak Pattan at Rs 9200, 400 bales of cotton from Pul Bagarh at Rs 9200, 200 bales of cotton from Shujabad at Rs 9200, 400 bales of cotton from Gaggo Mandi at Rs 9200, 400 bales of cotton from Baseer Pur at Rs 9200, 1600 bales of cotton from Fazil Pur at Rs 9500, 400 bales of cotton from Tonsa Sharif at Rs 9500, 1400 bales of cotton from Shadan Lund at Rs 9500, 1200 bales of cotton from Rajan Pur at Rs 9500, 600 bales of cotton from Ahmed Pur at Rs 9500, 1200 bales of cotton from Rahim Yar Khan at Rs 9500, 2400 bales of cotton from Mianwali at Rs 9500, 1400 bales of cotton from Khan Pur at Rs 9500, 400 bales of cotton from Dera Ghazi Khan at Rs 9500 and 200 bales of cotton from Head Bekeni at Rs 9500.