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KARACHI (June 03 2010): After a long-time, a deal was finalised on the cotton market on Wednesday as the buyers were still waiting for market moving factor, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6,400. In the ready business, a deal of 400 bales of cotton from Khan Pur done at Rs 6450, they said.
According to the market sources, it is most likely that some decisions may be taken in the meeting, which is expected shortly. In the meantime, they said the mills bought fine quality of cotton to meet the near future requirement. The ginners have little stock of unsold cotton, so the sellers were trying to sell at the best rate, they added.
Trading activity will improve after the expected positive decisions and arrival of new cotton, they said. On Tuesday the US cotton futures slid to their lowest level since February 25, as investors liquidated July positions and rolled them forward into December on their return from a long weekend, traders said.
Cotton, along with all US and London commodity and financial markets, were closed on Monday for holiday and reopened on Tuesday. The key July cotton contract on ICE Futures ended at 79.07 cents per lb, down 0.98 cent, or 1.22 percent. July futures fell to their lowest level since February 25 at 79.01 cents per lb, from a lower high at 80.33 cents. July volume totalled 19,284 traded contracts.
Traders said many players have continued rolling out of July contracts into next-most-active December futures on the ICE exchange, which accounts for July's larger declines. December cotton closed down 1.0 cent at 77.61 cents per lb, in volume of 6,584 lots.
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