Cotton futures on Monday rose to their highest level in over two months and registered their biggest one-day gain in more than eight months on short covering amid reports of severe weather in South Texas. There was muted reaction to China's announcement last week that it will hold sales to reduce state reserves, which may have inspired investors to follow Asian traders in covering their short positions, said Peter Egli, director of risk management at British merchant Plexus Cotton.
The July
The cautious trading attitude was maintained by buyers on the market, even though cotton arrival was larger and ginners had in ginneries some 0.8 million bales but sellers were not flexible to ease the high cost of doing business. According to arrivals factories received 11.349 million bales. Again on the last session of the week prices moved up .The spot rate also raised by Rs50 to Rs 3650 and the lint prices shot up to Rs 3800.
The increased cotton production is God's mercy as discouraged
Cotton futures fell on Friday, registering the biggest loss in nearly a month as index buying waned after sharp gains in recent days even as traders took stock of China's plans to auction its massive reserves of the natural fibre. "Thursday's poor export sales data, combined with the overbought condition of the market and the (mostly) culmination of index purchases in July are the likely culprits," said Louis Rose, independent cotton trader and consultant with Risk Analytics in Memphis, Tennesse
