Pak Cotton And New York Cotton Updates Rates and Market condition

Trading activity slows down on easy supply of phutti

 Trading activity came down on the cotton market on Friday as a result of an improvement in phutti arrivals after a break. Official spot rate maintained its overnight level at Rs 5,700. In the ready business, 17,000 bales of cotton changed hands between Rs 5550-5900. Resulting, the seeds cotton prices fell slightly in both the Punjab and Sindh at Rs 2400-2750.

According to the market sources, daily-intake came down as a result of fall in buying by mills and spinners. Cotton analyst Naseem Usman said that the phutti arrivals are at 5.3 million bales which is higher against the last year, this factor is keeping some genuine buyers away from fresh buying as they were expecting a decline in the rates after PCGA report. Now, it is likely that prices may not maintain the present levels due to easy supply of seeds cotton amid sluggish demand by the mills.

According to the Reuters, the US cotton futures closed modestly lower on Thursday, retreating from five-month highs, as investors took some profit on a price surge caused by worries that the market may face a near-term squeeze in supply of good quality fibre. Trading volumes in US cotton have been extraordinary since the rally began. On Thursday, Thomson Reuters data showed volumes in ICE cotton at above 64,800 lots, or nearly 260 percent higher than the 30-day average.

The following deals reported: 1600 bales from Shahdad Pur at Rs 5650-5700, 1000 bales from Tando Adam at Rs 5650-5700, 1000 bales from Mir Pur Khas at Rs 5650-5700, 1000 bales from Sanghar at Rs 5650/5700, 1000 bales from Khair Pur at Rs 5800, 400 bales from Upper Sindh at Rs 5800, 1400 bales from Hasil Pur at Rs 5550/5700, 600 bales from Fort Abbas at Rs 5600-5750, 200 bales from Vehari at Rs 5600, 200 bales from Gojra at Rs 5600, 200 bales from Bakkhar at Rs 5650, 200 bales from Uch Sharif at Rs 5650, 1000 bales from Burewala at Rs 5650-5700, 200 bales from Sahiwal at Rs 5700, 1000 bales from Rajan Pur at Rs 5700, 20 bales from Daran wala at Rs 5700, 200 bales from Faqir wali at Rs 5750, 400 bales from Kotla Mosa Khan at Rs 5700, 300 bales from Haroonabad at Rs 5750-5800, 400 bales from Depal Pur at Rs 5800, 200 bales from Layyah at Rs 5800, 400 bales from Lodhran at Rs 5800 and 3000 bales from Mian wali at Rs 5800-5900

New York cotton eases from five-month highs

Trading volumes in US cotton have been extraordinary since the rally began. On Thursday, Thomson Reuters data showed volumes in ICE cotton at above 64,800 lots, or nearly 260 percent higher than the 30-day average. Just a week ago, cotton prices appeared doomed after the US Department of Agriculture (USDA) issued one of its bleakest reports on the crop in decades. That report marked the third month in a row that the USDA had increased its estimates for world-wide stocks of cotton since the new marketing season started on August 1. The latest revision put ending stocks 14 percent higher than 2011/12's 69.56 million bales. . US cotton futures closed modestly lower on Thursday, retreating from five-month highs, as investors took some profit on a price surge caused by worries that the market may face a near-term squeeze in supply of good quality fibre. Prices eased for the first time in five sessions, after running up on concerns that cotton from the early harvest of fields in the south-eastern United States had high levels of "micronaire."

Such a condition could result in coarse fibres that could break during the spinning process at textile mills. The most-actively traded cotton contract on ICE Futures US, December, closed down 0.14 cent, or 0.2 percent, at 77.72 cents a lb. The contract fell the daily limit of 3 cents a pound before recovering most of it.

"The way this market has rallied has caught too many people short," said Jobe Moss of cotton traders MCM Inc in Lubbock, Texas. "It's only right that some profit-taking comes in, but there's still a lot of upside pressure that's keeping things up." December cotton settled at a five-month high of 77.86 cents on Wednesday, after rallying nearly 8 percent from Monday's close. Traders said the contract has potential to move up to May's highs of above 80 cents a pound, but also caution that such high prices could scare away millers.