Prices soared further on the cotton market on Wednesday amid sustained demand for quality lint from buyers, dealers said. The official spot rate was higher by Rs 50 to Rs 5400, dealers said. In the ready session, approximately, 5000 bales changed hands between Rs 4400-5600, they said. The prices of seed cotton in Sindh were at Rs 1900 and Rs 2500 and in Punjab rates were at Rs 2200 and Rs 3000, they said.
According to the market sources, tight supply position and rising demand by mills helped the rates to look ahead. Cotton analyst, Naseem Usman said that expected delay in cotton arrivals, propelling mills and spinners to lay hands over the fine quality as much as they can, despite the fact that rates are not matching with their psychological levels.
Reuters adds: ICE cotton futures rose on Tuesday after seesawing between positive and negative, as a weaker dollar provided support but rains in leading US growing region Texas pressured prices amid progress in plantings for the 2015/2016 crop. Cotton contracts for July on ICE Futures US settled up by 0.08 cent on Tuesday, a 0.1 percent gain, at 66.75 cents per pound.
The following deals reported: 200 bales from Multan at Rs 5250, 400 bales from Shujabad at Rs 5250 and Rs 5325, 800 bales from Vehari at Rs 5400-5500, 600 bales from Rahim Yar Khan at Rs 5600, same figure from Alipur and 400 bales from Shahair Sultan all done at the same level, they said.