Fears of pest attack after rains, propelled mills to make forward deals on the cotton market on Monday, dealers said. The official spot rate managed to hold overnight level at Rs 5,600, they added. In the session, some 13,000 bales of cotton changed hands between Rs 5600 and Rs 5750, they said. They also said that some deals reported at Rs 5800 in late evening. In Sindh, rates of seed cotton at Rs 2550 and Rs 2650, in Punjab prices came were at Rs 2200 and Rs 2650, they said.
Analysts said that buyers were under pressure under the circumstances because fine quality is in small number with higher prices, on the other hand, they can’t prefer to purchase low variety despite falling rates. Cotton analyst, Naseem Usman said that reports about damages caused by monsoon rains not in hand, besides, pest attack is also likely, so, prices may move up amid shortage of fine type.
The following deals reported: 1000 bales of cotton from Hyderabad sold at Rs 5600, 1600 bales from Sanghar at Rs 5600, 400 bales from Kotri at Rs 5600, 600 bales from Shahpur Chakar at Rs 5600, 1600 bales from Mirpurkhas at Rs 5600, 600 bales from Nawabshah at Rs 5625, 1200 bales from Shahdadpur at Rs 5600-5625, 1200 bales from Tando Adam at Rs 5625-5650, 600 bales from Vindar at Rs 5650, 200 bales from Elahabad at Rs 5725, 400 bales from Faqirwali at Rs 5725, 800 bales from Chistian at Rs 5725-5750, 1200 bales from Haroonabad at Rs 5725-5750, 200 bales from Hasilpur at Rs 5740, 200 bales from Vehari at Rs 5740, 600 bales from Chichawatni at Rs 5750, 1000 bales from Burewala at Rs 5750 and 200 bales from Mian Chano at Rs 5750, they said.