Seed cotton rates in Sindh were at Rs 3200-3300, prices in Punjab were at Rs 2900-3100, they said. In ready business, nearly 1600 bales of cotton changed hands at Rs 7800-8000, they added. Some experts said that mills were on the sidelines due to lack of buying interest as prices are on downside but it seems that present trend may not persist and rates may stabilise in the coming days.
Sharing the same views, Naseem Usman said that cotton has turned moisture after monsoon rains, which on the one hand may cause quality problem and on the other it could bring down the prices despite the new crop. Other brokers said that 15-20 percent decline on the industry gas rate, which propelled the traders to consider the impact of the move on their businesses. On Friday the US cotton futures ended lower, posting their fourth consecutive weekly loss, as fibre values continued to reel from demand destruction above the $2 per lb level.
The market will be shut for the US Independence Day holiday on Monday and reopen on Tuesday. Benchmark December cotton futures on ICE Futures US dropped 0.78 cent, or seven percent, to finish at $1.1781 per lb, after moving from $1.1651 and $1.1989. On a weekly basis, the contract dropped 3.4 percent, its fourth straight week of losses.
Cotton prices rallied to a peak of $2.27 per lb in the first quarter of the year, as tight supplies and robust demand, especially from top consumer China, fuelled the charge. But after such a fast and furious charge to price levels unseen since the US Civil War, consumer demand began to wane and prices responded, losing more than 40 percent in the second quarter alone. Market volumes picked up a bit from the sluggish pace at the beginning of the week, but remained on the low side. Only 7,526 lots traded late in New York, down 67 percent from the 30-day norm, Thomson Reuters preliminary data showed.—Agencies