RECORDER REPORT |October 12, 2017
KARACHI: Prices maintained firm posture despite steady arrivals of seed cotton on Wednesday in the process of trading, dealers said. The official spot rate maintained overnight level at Rs 6100, they said. In the ready session, around 25,000 bales of cotton changed hands between Rs 6175-6300, they said. In Sindh seed cotton prices gained modestly at Rs 2800-3050, in the Punjab rates were up by Rs 50 at Rs 2900-3250, as per 40 kg, they said.
Market sources said that mills and spinners were laying hands over the best quality of cotton because they have to keep buying to replenish their stock. They said that the mills were trying to buy as much they can buy, in the meantime, they observed that the ginners raised asking prices to take advantage of
availability of lint. Cotton analyst, Naseem Usman said that as a whole rates are steady the world over, this factor is helping the local prices to maintain firm posture. Prices of quality lint may not fall steeply because surge in dollar’s rate likely to give a boost to the local prices, other brokers said.
Adds Reuters: ICE cotton futures settled flat on Tuesday after rising to near a one-week high on concerns about Texas weather, with the market awaiting a monthly crop supply and demand report from the US government on Thursday.
Cotton contracts for December were unchanged from the previous session at 68.95 cents per lb. It earlier touched 69.88 cents a lb, the highest since October 4. The September World Agricultural Supply and Demand Estimates (WASDE) report projected 21.76 million bales of US cotton output for the 2017-2018 crop year, higher than the 20.55 million bales of production estimated in August. (Source: Business Recorder)