Rates showed further rise on the cotton market on Tuesday in the process of sluggish business, dealers said. The official spot rate maintained overnight level at Rs 6,600, they added. Prices of seed cotton in Sindh per 40 kg were at Rs 2400-3100, in Punjab rates were firm at Rs 2900-3300, dealers said. In the ready session, around 8000 bales of cotton changed hands between Rs 6500-6975, dealers said.
Market sources said that local buyers were busy in making deals with the Indian exporters due to quality and price factor. Sharing the same views, some experts said that local traders were getting better quality stuff at the reasonable rates. On the other hand, local product of fine quality was short in demand, this factor was pushing prices higher, they said. The ginners were not keen to do business at the lower rates, as they were trying to sell, according to their psychological level, they said.
Reuters adds: ICE cotton continued its winning streak into a fifth day on Monday, rising to a two-month high, as concerns about depleting stocks and continued optimism over China’s appetite for fibre after the government announced a new formula for import tariffs. The most-active March cotton contract on ICE Futures US closed up 0.16 cent, or 0.2 percent, at 83.38 cents per lb. Volumes were low, with just over 8,500 lots traded on the day.
A perception of nearby tightness kept the front-month price at a premium over the forward price at 73 cents. The May contract pierced its 100-day moving average to settle at 82.65 cents per lb, up 0.38 cent, or 0.5 percent. The following deals reported as 800 bales from Khair Pur at Rs 6500, 800 bales from Khair Pur (BCI) at Rs 6600, 400 bales from Chichawatni at Rs 6550, 400 bales from Jalal Pur at Rs 6600, 600 bales from Faqir Wali at Rs 6600, 2400 bales from Haroonabad at Rs 6600, 400 bales from Dharan Wala at Rs 6600, 400 bales from Rajan Pur at Rs 6700, 800 bales from Rahim Yar Khan at Rs 6800 and 400 bales from Dera Ghazi Khan at Rs 6975, they added.