Expectations for several incentives for textile industry, pushed the rates higher on the cotton market on Friday, dealers said. The official spot rate appreciated by Rs 50 at Rs 6,450, they added. Prices of seed cotton in Sindh per 40 kg were unchanged at Rs 2200-3000, in Punjab prices showed no change at Rs 2700-3100, dealers said. In the ready session, dearth of fine quality cotton cut down volume of business, somehow, over 16,000 bales of cotton changed hands between at Rs 6300-6650, they said.
Market sources said that mills and spinners were expecting a visible rise in booking of orders in Heim textile exhibition by importing countries, induced them to do quality caution buying to avail the chance. Heim textile exhibition in January is providing textile exporters to capture foreign market by keeping their production free from contamination, the Generalised System of Preference (GSP) plus on import of Pak products by the European Union (EU), may help country to increase the foreign exchange earnings in the coming days, cotton analyst Naseem Usman said.
Till, now over 200 firms have registered to participate in the January Heim Textile fair in Germany, other experts said. Beside, continuation in gas supply is also a good development, which is definitely by the government, they said and adding that this factor is giving an impression of business friendly atmosphere for the traders.
Reuters adds: Cotton futures were slightly lower on Thursday as institutional selling offset buying triggered by “encouraging” export sales data that bolstered hopes of continued steady mill demand. The most-active March cotton contract on ICE Futures US closed down 0.2 cent, or 0.25 percent, at 78.85 cents a lb. Volumes were low with only 7,096 March lots traded on the day.
Prices gave up earlier gains after encouraging US export sales which revealed almost 250,000 rolling bales of cotton were sold for export in the week to November 28. The following deals reported as 1000 bales of cotton from Khair Pur (BCI) at Rs 6300, 1000 bales from Upper Sindh at Rs 6185-6200, 1000 bales from Upper Sindh (BCI) at Rs 6400, 400 bales from Daran Wala at Rs 6300, 2000 bales from Vehari at Rs 6350, 1600 bales from Burewala at Rs 6350, 200 bales from Fort Abbas at Rs 6400, 1400 bales from Faqir Wali at Rs 6400, 400 bales from Haroonabad at Rs 6400, 400 bales from Maroot at Rs 6400, 400 bales from Khanewal at Rs 6450, 400 bales from Layyah at Rs 6500, 400 bales from Lodhran at Rs 6500, 400 bales from Qutub Pur at Rs 6500, 400 bales from Shujabad at Rs 6500, 600 bales from Jalal Pur at Rs 6500, 600 bales from Rahim Yar Khan at Rs 6550, 2200 bales from Mian Wali at Rs 6550-6650 and 400 bales from Rajan Pur at Rs 6600, they added.