Prices showed more appreciation on the cotton market on Tuesday in the process of a strong demand by mills and spinners, dealers said. Official spot rate was higher by Rs 100 to Rs 5,300, they said. In the ready business, over 25,000 bales of cotton changed hands between Rs 5200-5550, they said.
In Sindh, prices of seedcotton of inferior type rose by Rs 100 to Rs 2300 while the best type did not show any change at Rs 2500, in the Punjab rates followed same pattern, gaining Rs 100 to Rs 2200-2500, they added. According to the market sources, mills and spinners both were active buyers only because of quality factor. India’s expected selling may cause fall in cotton prices in the near future, they said.
Production is good and quality is also improving with the passage of time, this is a positive development and will definitely help in increasing the foreign exchange in the coming days, cotton analyst Naseem Usman said. According to the Reuters, cotton prices ended higher on Monday on technical buying after testing the 70-cent mark, with traders expecting renewed pressure ahead of the US harvest.
“This was consolidation trading. It found support at 70 cents,” said John Flanagan, an analyst at Flanagan Trading Corp in North Carolina. New York cotton for December delivery ended settled at 71.2 cents per lb on ICE Futures US, up 0.78 percent. Prices recovered from fresh two-month lows of 70.22 cents.
The following deals reported: 2000 bales of cotton from Shahdad Pur at Rs 5350-5400, 1600 bales from Sanghar at Rs 5350-5400, 2000 bales from Tando Adam at Rs 5375-5400, 1600 bales from Mir Pur Khas at Rs 5300-5400, 800 bales from Nawab Shah at Rs 5400, 600 bales from Hyderabad at Rs 5400, 2000 bales from Khair Pur at Rs 5500-5550, 2000 bales from Upper Sindh at Rs 5400-5550, 200 bales from Dadu at Rs 5500, 1200 bales from Chichawatni at Rs 5200-5350, 400 bales from Vehari at Rs 5250-5300, 1000 bales from Burewala at Rs 5250-5400, 200 bales from Arif wala at Rs 5250, 2400 bales from Rajan Pur at Rs 5250-5400, 200 bales from Chaniot at Rs 5250, 200 bales from Kasso wal at Rs 5250, 600 bales from Maroot at Rs 5300, 800 bales from Khanewal at Rs 5300, 200 bales from Gaggo mandi at Rs 5300, 400 bales from Khan Pur at Rs 5300, 2600 bales from Haroonabad at Rs 5400-5425, 800 bales from Faqir Wali at Rs 5400, 400 bales from Bahawal Pur at Rs 5400 and 400 bales from Sadiqabad at Rs 5475, they said.