Prices moved higher on the cotton market on Thursday on persistent demand mills and spinners, dealers said. The official spot rate was unchanged at Rs 5500, dealers said. In the ready session, around 7000 bales changed hands between Rs 5400-5800, they said. Seed cotton prices in Sindh were up by Rs 100 to Rs 2100-2700 and in Punjab followed same trend, picking up equal amount to Rs 2500-3100, they said According to the market sources, mills were active to cover the forward deals, so that they would be able to meet urgent requirements.
Cotton analyst, Naseem Usman said that rates are firm due to tight supply position, some experts were of the opinion that prices may ease slightly if arrivals of new crop started some early, but it will depend on quality, fine quality to attract buyers, who are facing shortage of fine lint cotton. Market sources said that despite opposition by the textile the Senate has passed the Gas Infrastructure Development Cess (GIDC) bill, causing further uncertainties among traders.
Reuters adds: ICE cotton futures fell for the third straight day on Wednesday, hitting a four-week low as trend-following funds continued to exit July long positions, though concerns about slow planting progress so far helped boost the December contract.
Cotton contracts for July settled down by 0.2 cent on Wednesday, a 0.3 percent loss, to 64.15 cents per pound, after falling as low as 63.71 cents a lb, the lowest level for the front-month since April 23. The following deals reported: 400 bales of cotton exporter to mill at Rs 5400, 2500 bales mill to mill at Rs 5575, 600 bales from Multan at Rs 4850-5500, 400 bales from Ghazi Ghat at rs 5550, same number from Shahir Sultan at the same rate, 600 bales from Alipur at Rs 5550, same number from Haroonabad at Rs 5600, 144 bales from Vehari at same rate, 1000 bales from Khanpur at rs 5765 (conditional) and 200 bales from bahawalpur at Rs 58 (conditional), they said.