Cotton prices firm on moderate trade

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

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