As a result of sharp rise in the dollar rates, exporters showed fresh interest in cotton buying on the local market on Thursday, dealers said. The official spot rate was raised by Rs 50 to Rs 5,450, they said. Prices of seedcotton in Sindh were at Rs 1700-2350 and in the Punjab a Rs 2000-2750, they said.
In ready dealings, about 30,000 bales of cotton changed hands at Rs 4,000-5,600, they added. The dollar hit all-time high level versus the rupee, caused fresh buying of cotton the exporters, they said. Mills also covered the forward buying in the absence of official word about price fixation and expectations for increase in demand due to shortage of stuff in the coming days, experts said.
In China, cotton demand is rising and prices are firm in Indian market also, which indicates that prices may stabilise in the coming days, they said. Despite, not very encouraging factors on the economic and political fronts, cotton traders are hoping to win booking orders in the Heimtex fair in Frankfurt (Germany) next week, Naseem Usman said. Under the circumstances, mills were paying higher rates of fine quality and it looks that the ginners may increase the asking prices, dealers said.
According to Reuters, on Wednesday, the NY cotton futures closed higher as index buyers and speculators bought the fiber along with other commodities for the second trading day in 2012. Benchmark March cotton futures ended 12 cent higher at 95.92 cents a lb. The session range narrowed to 94.75 to 96.48 cents. The contract reached its loftiest level since November 18 and settled at its highest since November 17. Traded volume on Wednesday came 13,161 lots, about 64 percent higher than the 30-day average, Thomson Reuters preliminary data showed.
Reports said that China’s cotton imports, world consumption and the gyrations of the global economy will be the prime factors driving cotton market prices in 2012, a senior official said on Wednesday. Mike Quinn, the president and chief executive of the Carolinas Cotton Growers Co-operative, said at the annual Beltwide Cotton conference a number of factors will influence price direction in cotton futures on the ICE Futures US exchange.
The following deals were reported: 400 bales of cotton from Shahdad Pur at Rs 4000, 400 bales of cotton from Tando Adam at Rs 4100, 400 bales of cotton from Mir Pur Khas at Rs 4200, 2000 bales of cotton from Khair Pur at Rs 5000/5100, 2000 bales of cotton from Upper Sindh at Rs 5250/5300, 1000 bales of cotton from Garh Maharaja at Rs 5000, 400 bales of cotton from Chichawatni at Rs 5000, 200 bales of cotton from Gojra at Rs 5100, 800 Jhang at Rs 5100/5200, 600 bales of cotton from Arif Wala at Rs 5200, 400 bales of cotton from Dunia Pur at Rs 5200, 2400 bales of cotton from Faqir Wali at Rs 5200/5225, 2000 bales of cotton from Haroonabad at Rs 5100/5300, 2000 bales of cotton from Khanewal at Rs 5300/5500, 3000 bales of cotton from Fort Abbas at Rs 5450, 400 bales of cotton from Lodhran at Rs 5500, 400 bales of cotton from Tonsa Sharif at Rs 5500, 400 bales of cotton from Shadan Lund at Rs 5500, 400 bales of cotton from Bahawal Pur at Rs 5500, 1000 bales of cotton from Rajan Pur at Rs 5500, 400 bales of cotton from Multan at Rs 5500, 400 bales of cotton from Head Bekani at Rs 5500, 2000 bales of cotton from Dera Ghazi Khan at Rs 5500/5600, 1000 bales of cotton from Shujabad at Rs 5500, 600 bales of cotton from Ali Pur at Rs 5600, 2200 bales of cotton from Rahim Yar Khan at Rs 5600, 800 bales of cotton from Khan Pur at Rs 5600, they said.