Seed cotton prices were higher on the cotton market on Wednesday in the process of strong demand from mills and exporters, dealers said. The official spot rate was unchanged at Rs 6550, they said. Price of seed cotton in Sindh per 40 kg of low type was unchanged at Rs 2100 while the best variety picked up Rs 50 to Rs 3050, in Punjab rate of inferior type was inert at Rs 2900 and the fine quality gained Rs 100 to 3300, dealers said.
In the ready session, about 25,000 bales of cotton changed hands between Rs 6650-6800, they said. Some traders said that the millers and spinners were not satisfied with the prevailing situation because the news appeared that pest and virus attacks on cotton crop may hurt quality of cotton in days to come. In the meantime, yarn prices also stabilised and it is also likely that country may achieve better foreign exchange as a result of rise in exports of textile products, cotton analyst, Naseem Usman said. Reports showing that Chine will start sale of cotton from it’s stock because it has nearly half of total production of the world. This factor may ease pressure over the prices, brokers said. According to the Reuters, spot cotton futures on ICE jumped on Tuesday on short-covering and heavy spread-related dealings as traders raced to exit positions ahead of the December contract’s delivery period. The ICE December contract, which expires on December 6, rose 0.91 cents, or 1.2 percent, to 77.88 cents a lb. The most-active March cotton contract on ICE Futures US finished little changed, up 0.02 cent, or 0.03 percent, at 78.22 cents a lb and not far from last week’s near 10-month low of 77.64 cents.
The following deals reported as 800 bales from Chistian at Rs 6650, 1400 bales from Haroonabad at Rs 6600-6700, 400 bales from Basti Malook at Rs 6650, 1000 bales from Yazman Mandi at Rs 6650-6700, 400 bales from Bahawal Pur at Rs 6675, 800 bales from Shujabad at Rs 6675, 2000 bales from Khan Pur at Rs 6700, 1000 bales from Ahmed Pur at Rs 6700, 800 bales from Lodhran at Rs 6700, 400 bales from Jatoi at Rs 6700, 400 bales from Sheher Sultan at Rs 6700, 400 bales from Fort Abbas at Rs 6700, 600 bales from Kabir Wala at Rs 6700, 1000 bales from Liaquat Pur at Rs 6700, 1000 bales from Sadiqabad at Rs 6700, 400 bales from Khanewal at Rs 6700, 400 bales from Gealywal at Rs 6700, 1000 bales from Tonsa Sharif at Rs 6700, 1200 bales from Layyah at Rs 6700, 1000 bales from Feroza at Rs 6700-6750, 2000 bales from Rahim Yar Khan at Rs 6700-6730 and 5000 bales from Fazil Pur at Rs 6800, they added.