Firmness prevailed on the cotton market on Wednesday amid modest trading, dealers said. The official spot rate was unchanged at Rs 6,350, dealers said. Seed cotton prices in Sindh were inert at Rs 2,200-2,800 and in the Punjab, rates were at Rs 2,300-3,000, they said. In the ready business, approximately 7,000 bales of cotton changed hands between Rs 5,800-6,600, they said.
Cotton analyst Naseem Usman said that prices held the present levels due to shortage of fine quality amid rising demand by mills. He said that prices of Indian cotton also remained firm amid increasing speculations that Indian might mull to stop exports of cotton. Other brokers were of the view that short position in the local market and likely exports’ ban to cause sharp rise in the rates.
According to Reuters, the NY cotton rose and the March-May contract spread widened to nine-month highs on Tuesday as speculators liquidating their long positions moved to the sidelines and as Chinese buyers returned following the New Year. The most-active May cotton contract on ICE Futures US settled up 0.94 cent, or 1.1 percent, at 84.13 cents per pound, after earlier spiking to 84.87 cents, the highest price since May 2012.
The following deals were reported: 600 bales from Saleh Pat at Rs 6,275-6,450, 400 bales from Rohri at Rs 6,450, 200 bales from Sahiwal at Rs 5,800, 400 bales from Mongi Bangla at Rs 5,900, 600 bales from Faqir Wali at Rs 6,000, 800 bales from Hasil Pur at Rs 6,250, 400 bales from Mamo Kanjan at Rs 6,300, 400 bales from Layyah at Rs 6,300, 1,000 bales from Haroonabad at Rs 6,450, 400 bales from Fazil Pur at Rs 6,450, 800 bales from Mian Wali at Rs 6,450-6,550, 400 bales from Liaquat Pur at Rs 6,500, 600 bales from Rahim Yar Khan at Rs 6,600, they said.