Pakistan - Cotton Quality Hit By Monsoon Rains

Nitin Madkaikar, 16-08-2013 12:45 - ray road
ray road

Recent monsoon rains hit cotton quality slightly, causing increase in prices, dealers said on Tuesday. The official spot rate, after maintaining stable trend, showed an improvement of Rs 50 to Rs 6,600, they said. Prices of seed cotton per 40-kg in Sindh and Punjab fell by Rs 150 to Rs 2,700-3,850, they said. In the ready session, approx. 15,000 bales of cotton changed hands, between Rs 6,650-6,700, they said. Cotton analyst Naseem Usman said rains in cotton belt hit the cotton quality slightly, which may cause rise in prices in the coming days. Other brokers said if rains prolonged, it may dry up supply of seed cotton in days to come, on the other hand, short supply position in global market is also a factor behind the rush buying of cotton. Market sources said there was demand by mills and spinners but spinners were not ready to oblige them mainly because of tight supply, they added. According to the Reuters, ICE cotton rallied to the highest level since mid-June on Monday after a monthly US government report lowered US and global output expectations and pegged them below trade expectations. The benchmark December cotton contract on ICE Futures rallied 1.15 cents, or 1.3 percent, to finish at 90.08 cents per lb after climbing to 90.39 cents, the highest level for the second-month contract in almost two months. The outlook for US production of 13.05 million 480-lb bales would put the US output at the lowest level in four years and was below median expectations of 13.75 million bales. Further, the USDA lowered its expectations for US inventories by the end of July 2014 to 2.8 million bales from a July forecast of 2.9 million. Source: Business Recorder.

ray road

Recent monsoon rains hit cotton quality slightly, causing increase in prices, dealers said on Tuesday. The official spot rate, after maintaining stable trend, showed an improvement of Rs 50 to Rs 6,600, they said. Prices of seed cotton per 40-kg in Sindh and Punjab fell by Rs 150 to Rs 2,700-3,850, they said. In the ready session, approx. 15,000 bales of cotton changed hands, between Rs 6,650-6,700, they said. Cotton analyst Naseem Usman said rains in cotton belt hit the cotton quality slightly, which may cause rise in prices in the coming days. Other brokers said if rains prolonged, it may dry up supply of seed cotton in days to come, on the other hand, short supply position in global market is also a factor behind the rush buying of cotton. Market sources said there was demand by mills and spinners but spinners were not ready to oblige them mainly because of tight supply, they added. According to the Reuters, ICE cotton rallied to the highest level since mid-June on Monday after a monthly US government report lowered US and global output expectations and pegged them below trade expectations. The benchmark December cotton contract on ICE Futures rallied 1.15 cents, or 1.3 percent, to finish at 90.08 cents per lb after climbing to 90.39 cents, the highest level for the second-month contract in almost two months. The outlook for US production of 13.05 million 480-lb bales would put the US output at the lowest level in four years and was below median expectations of 13.75 million bales. Further, the USDA lowered its expectations for US inventories by the end of July 2014 to 2.8 million bales from a July forecast of 2.9 million. Source: Business Recorder.

 
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