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KARACHI (June 10 2010): Steady trend was witnessed on the cotton market on Wednesday as many participants are hoping that the trade activity will resume at the end of month when the new production will start reaching to the ginning factories, dealers said. The Karachi Cotton Association (KCA) official spot rate retained the overnight level at Rs 6,350. In the ready business it was speculated that one deal was finalised (mill to mill) at Rs 6,400 during the day, they said.
In fact, the buyers and sellers both are waiting for arrival of new crop, which is expected during the last week of the current month, dealers said. In the meantime the buyers were trying to get cotton from the overseas market to meet the requirement, they said.
On Tuesday the US cotton futures closed with strong gains, ending an eight-day rout as speculative selling apparently exhausted and supply/demand fundamentals pointing to higher prices, brokers said. Key July cotton contracts on ICE Futures finished 1.1 cent, or 1.42 percent, higher at 78.32 cents per lb. The range high reached up to 78.45 cents from a low at 76.98. July volume was hefty at 17,686 lots.
Monday's low at 75.80 cents a lb was last seen on February 16. December cotton settled at 76.41 cents a lb, up 0.90 cent, or 1.19 percent. Tuesday's tally came to 14,732 lots. On Monday, December cotton slid to 74.09 cents, a low dating back to March 31. Midway through the previous session, after a round of heavy selling that took prices to levels last seen on February 16, fiber prices seemed to have found a bottom, turning modestly higher by the close.
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