Rates dropped modestly due to easy supply of phutti on the cotton market on Tuesday, dealers said. The official spot rate was down by Rs 50 to Rs 5350, they added. In ready session, around 22,000 bales of cotton changed hands between Rs 5350-5525, they said. Prices of seed cotton in Sindh were at Rs 2525 and Rs 2550 and in Punjab prices were unchanged at Rs 2600 and Rs 2625, they said.

Market sources said that volume of business improved as mills and spinners were active due to declining trend in prices. Cotton analyst, Naseem Usman said that supply of seed cotton improved which caused an attraction for buyers. Besides, NY cotton futures also drifted lower due to good crop size, so it looks that prices hold the current levels or fall but slow paced, other brokers said.

Reuters adds; cotton futures fell on Monday as bearish expectations for a large crop in the United States, the world's top exporter, offset mill buying. The benchmark December cotton contract on ICE Futures US closed down 0.51 cent, or 0.8 percent, at 63.84 cents a lb. The US government last week projected domestic production will reach a four-year high as demand in top consumer China is expected to fall dramatically due to a policy overhaul during the 2014/15 crop year that began on August 1.

Source:- brecorder.com