Prices maintained firm trend on the cotton market on Tuesday in the
process of moderate trading, dealers said. The official spot rate was
unchanged at Rs 8600, they added. In the ready session, about 5000 bales
of cotton changed hands between Rs 8600-8850, they said.
According
to the market sources, leading mills kept on the sidelines as they have
already covered their position, but some small mills showed little
interest in buying fine quality.
Commenting on the hike in
interest rate, cotton analyst, Naseem Usman said that business community
is worried about high cost of production after fresh increase in
interest rate at 12.25 percent. Sharing the same idea, other experts
said that the move will affect the cotton trade, because nearly 80
percent cotton market depends on banking sector to get their loans for
running their business.
Adds Reuters: Cotton prices settled
about 3% higher on Monday as unfavourable weather prompted planting
delays and concerns about lower crop yields, with the backdrop of a
bitter US-China trade spat.
Cotton contracts for July settled up
1.92 cent, or about 3%, at 67.91 cents per lb. It traded within a range
of 65.85 and 67.99 cents a lb, its highest since May 13.
Total
futures market volume rose by 6,716 to 28,585 lots. Data showed total
open interest gained 1,053 to 218,318 contracts in the previous session.
Following
deals were report: 2000 bales of cotton from Dherki at Rs 8850, 400
bales from Mehrabpur at Rs 8000, 800 bales from Chani Goth at Rs 8725,
400 bales from Rahim Yar Khan at Rs 8700 and 1000 bales from Layyah at
Rs 8600, they said.
Source: Business Recorder, Pakistan Wednesday, 22 May 2019