Some needy buyers showed interest in fresh buying on the cotton market on Saturday in process of trading, dealers said. The official spot rate was unchanged at Rs 6,600, they added. Prices of seed cotton in Sindh and Punjab per 40 kg were inert at Rs 2500-Rs 3100, dealers said. In the ready session, nearly 3000 bales of cotton changed hands between Rs 6500-6700 (conditional), dealers said.
According to the market sources, not much changes were seen in the present outlook as leading buyers, particularly, spinners were worried about the cotton yarn, local buyers imported Indian cotton yarn, which caused financial crunch among sellers. They also said that major reason behind this factor is quality, which propelled traders of cotton to make purchase of fine type. Under the circumstance, textile exporting countries facing tough competition, Pakistan should be more cautious after the Generalised System of Preference (GSP) plus status by the European Union (EU), experts said.
Cotton analyst, Naseem Usman said that nearly seven years ago, Australia has provided cotton seed to the Pakistan Cotton Ginners Association (PCGA) and now again Australia has offered the Association to attend an international conference in August, this year.
Reuters adds: Cotton futures rallied on Friday and marked a third straight weekly gain, fuelled by worries over tightening nearby supplies in the United States, the world’s top exporter.
The front-month May cotton contract on ICE Futures US rallied 1.13 cents, or 1.2 percent, to settle at 93.31 cents a lb, and post a third straight up week. Prices soared as high as 93.60 cents a lb, meeting resistance as they neared last week’s seven-month high of 93.75 cents a lb. The December ICE cotton contract rose 0.27 cent, or 0.3 percent, to finish at 80.25 cents a lb. The following deals were reported: 200 bales from Rohri at Rs 6700 (conditional), 2400 bales from Haroonabad at Rs 6500 and 200 bales from Dharan Wala at Rs 6525, they said.