Prices of better type improved on the cotton market on Monday amid pre-Eid buying, dealers said. The official spot rates also gained Rs 50 to Rs 7100 they said. Prices of seed cotton in Sindh per 40 kg were unchanged at Rs 2600-3000, in Punjab rates were also inert at Rs 2800-3100, dealers said. In the ready session, around 8,000 bales of cotton changed hands between Rs 7100-7200, they said. It was noted that prices went up despite sustained flow, dealers said and adding that ginners were demanding higher prices on the basis of quality factor.
On the other hand, news of pest attack on some standing crop also played a negative role behind the price hike, they added. Despite, all these factors, it appeared that rates would not fluctuate sharply in the coming days, cotton analyst, Naseem Usman said. Besides, shortage of trucks also pushing the charges up, at Eidul Azha, sacrificial animals owners try to make profit as much as they can, so this factor caused scarcity of transport and hike in rates, as well, he added. In fact, demand of trucks increased by animal owners, resulting prices go up, he added.
According to the Reuters, cotton futures in India are expected to fall during the week on hopes of higher output as rains lead to better yields and due to approaching supplies from the new season harvest amid sluggish exports. The government estimated cotton output in 2013/14 at a record high 35.3 million bales as against 34 million bales a year ago. In New York, the December cotton contract on the Intercontinental Exchange was down 1.73 percent at 85.67 cents per lb as uncertainty over a US government shutdown held down prices, even as a tropical storm headed for the cotton belt.
The following deals reported as 1,400 bales of cotton from Khairpur at Rs 7100, 1000 bales from Upper Sindh at Rs 7100/7150, 400 bales from Sillanwali at Rs 7100, 600 bales from Khanewal at Rs 7100, 600 bales from Mianwali at Rs 7150, 400 bales from Burewala at Rs 7150, 400 bales from Fort Abbas at Rs 7200, 800 bales from Haroonabad at Rs 7200, 400 bales from Sadiqabad at Rs 7200, 400 bales from Rahimyarkhan at Rs 7200, 1000 bales from Rajanpur at Rs 7200, 400 bales from Fazilpur at Rs 7200, they added.