Prices maintained an upward trend on the back of strong mills’ buying, dealers said on the cotton market on Tuesday. Official spot rate, after a short break, went up by Rs 100 to Rs 5,500, they said. In the ready business, around 24,000 bales of cotton changed hands between Rs 5400-5800, they said.
In Sindh prices of seeds cotton, extended overnight gains, picking up more Rs 100 to Rs 2500-Rs 2700, in the Punjab prices were higher at Rs 2500-2800, they said. Some brokers said that rising demand by mills and spinners cause a fresh increase in the rates. Commenting on the fresh flare-up in the prices, Naseem Usman said that the ginners and growers were hesitant in selling the best quality of cotton below the psychological levels.
As far as demand is concern, apparently it looks that buyers indulged in unforeseen uncertainties, trying to cover their position as much as they can, they said. According to the Reuters, the NY cotton prices were flat to slightly higher on Monday as speculative short covering and a buoyant grains market offset concerns about slowing growth in China, the world’s largest textile market. New York cotton for December delivery settled up 0.41 percent at 71.78 cents per lb on ICE Futures US, moving off intraday highs after briefly piercing the 72-cent mark. Fibers may be prone to more short covering after speculative investors raised their bearish bets ahead of the US harvest. In the week to October 2, they switched to a net short position for the first time in two months, Friday’s data showed. The Thomson Reuters-Jefferies CRB index, a global benchmark for commodities, was down 0.5 percent. The euro was also under pressure due to uncertainty over the timing of a possible bailout of Spain.
The following deals reported: 2200 bales of cotton from Shahdad Pur at Rs 5500/5600, 2000 bales from Sanghar 5400-5500, 1600 bales from Tando Adam at Rs 5500/5600, 600 bales from Matiyari at Rs 5500/5600, 1000 bales from Khair Pur at Rs 5700, 1000 bales from Upper Sindh at Rs 5700, 200 bales from Mongi Bangla at Rs 5400, 200 bales from Gojra at Rs 5400, 200 bales from Chaniot at Rs 5400, 200 bales from Chichawatni at Rs 5400, 400 bales from Khanewal at Rs 5450/5600, 400 bales from Muridwala at Rs 5400/5450, 200 bales from Mubarik Pur at Rs 5450, 400 bales from Uch Sharif at Rs 5450, 400 bales from Sillan Wali at Rs 5450, 600 bales from Vehari at Rs 5475/5500, 800 bales from Hasil Pur at Rs 5425/5600, 200 bales from Samandari at Rs 5550, 400 bales from Khan Pur at Rs 5525, 1000 bales from Mian Wali at Rs 5600/5800, 400 bales from Pak Pattan at Rs 5600/5650, 400 bales from Sahiwal at Rs 5600, 200 bales from Shujabad at Rs 5600, 400 bales from Tonsa Sharif at Rs 5600, 200 bales from Mian Chano at Rs 5600, 200 bales from Gaggo Mandi at Rs 5600, 400 bales from Chistian at Rs 5600, 3600 bales from Burewala at Rs 5600, 200 bales from Bahawal Nagar at Rs 5600, 400 bales from Fort Abbas at Rs 5600/5700, 1000 bales from Haroonabad at Rs 5700/5750, 1200 bales from Rajan Pur at Rs 5700/5800, they said.