Fresh demand by mills and spinners, helped the rates to hold present levels, dealers said on the cotton market on Tuesday. The official spot rate was unchanged at Rs 4,750, dealers said. In the ready session, trading activity improved slightly, as about 5000 bales of cotton changed hands between Rs 3450 and Rs 4950, they said. The seed cotton rates in Sindh at Rs 1600 and Rs 2300, in Punjab prices were at Rs 1700 and Rs 2500, they said.
According to the market sources, trading activity improved due to rising demand by mills and spinners. Sharing the same opinion, cotton analyst, Naseem Usman said that lower-than-expected phutti arrivals figure by the Pakistan Cotton Ginners Association (PCGA) and winter rains in some parts of Punjab pushed the prices higher.
He said that works at ginning factories stopped after rains in Punjab, the prices may stabilise in the local markets as rates gaining momentum in the international markets. The phutti arrivals figure issued by the PCGA, till January 31 is 14.4 million bales, which is less against the market anticipation, he said.
Reuters adds: ICE cotton hit a more-than two-week high on Monday as investors exited short positions after the strongest weekly gain in more than four months, triggering technical buying above a key support level. The most-active March cotton contract on ICE Futures US gained 0.53 cent, or 0.9 percent, to settle at 59.89 cents a lb after rising as high as 60.08 cents, its highest level since January 15. Fiber rose 3.6 percent last week, its largest weekly gain since the week ended September 12.
The following deals reported: 97 bales of cotton from Tando adam at Rs 3450, 352 bales from Vindar at Rs 4150, 200 bales from Setharaja at Rs 4600, same figure from Rohri at the same rate, 600 bales from Mehrabpur at Rs 4150, 200 bales from Chichawatni at Rs 4700, 400 bales from Khanewal at Rs 4875, 1100, Mian Chano at Rs 4875-4900, 200 bales from Jalalpur at Rs 4900, 400 bales of cotton from Dunyapur at the same rate, same figure from Rahim Yar Khan at Rs 4900-4950 and 200 bales from Bakhar at Rs 4950, they added.