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KARACHI (June 09 2010): Not a single transaction was seen on the cotton market on Tuesday as both buyers and sellers were still sidelined in the absence of fresh leads, dealers said. The Karachi Cotton Association (KCA) official spot rate spared of further losses and retained the overnight level at Rs 6,350, they said.
According to the market sources, no change was seen in the present outlook as traders were not happy due to lack of incentives in the budget, which was announced on Saturday. The cotton circle was expecting business friendly budget, but they felt missing of several promises as textile minister had during last days asked them to wait for some good news in the budget, but in vein, analysts said.
On Monday the US cotton futures ended with moderate gains after extending the steep losses of the previous session to three- and four-month lows, but trade buyers, mill fixations and short-cover buyers all swooped in at the lows. Key July cotton contracts on ICE Futures settled 15 cent, or 0.21 percent, higher at 77.22 cents per lb. The range extended down to a level not seen since February 16 at 75.80 cents a lb. July volume was robust at 14,706 contracts. December cotton finished with 0.23 cent gains at 75.60 cents a lb, on strong volume of 13,486 lots. December cotton slid to 74.09 cents, a fresh low dating back to March 31.
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