Strong demand by mills and reports of tight supply of fine type helped the rates to sustain their present levels in the process of trading on Wednesday, dealers said. The official spot rate retained overnight levels at Rs 5,350, dealers said. In Sindh, seed cotton prices were same at Rs 2200 and Rs 2800 and in the Punjab rates also depicted no change at Rs 2300 and Rs 3000, they said.
In the ready business, the deals of over 20,000 bales of cotton finalised between Rs 4775 and Rs 5650, they said.
Trading activity improved as mills showed interest in fresh buying of fine quality, cotton analyst, Naseem Usman said.
Other brokers said that the ginners were trying to make deals at higher rates, but mills were not in a mood to oblige them, in anticipation of better profit in future.
Some analysts were of the view that after the Economic Co-ordination Committee of the Cabinet (ECC) move in which it allowed the Trading Corporation of Pakistan (TCP) to sell balance lint cotton stock available with them, this factor may help the volume of business may improve further.
The reports further said that proposal of the Ministry of Commerce, the ECC meeting chaired by Finance Minister Mohammad Ishaq Dar, allowed the TCP to sell cotton on retail daily basis at minimum of the KCA spot rate for the day through commission agent(s) whose services may be hired by the TCP through open tender.
Reuters adds: ICE cotton futures rebounded on Tuesday from a six-week low hit the prior session as a weekly US government report showed slow harvest progress, particularly in No 2 growing state Georgia, as rains prevented farmers from undertaking harvest activities.
March cotton on ICE Futures US settled up 0.34 cent, or 0.55 percent, at 61.94 cents per lb. It traded within a range of 61.61 and 62.29 cents a lb. Total futures market volume fell by 20,811 to 12,891 lots. Data showed total open interest fell 1,521 to 171,750 contracts in the previous session.
The following deals reported, 600 bales of cotton from Mirpurkhas at Rs 4775-4900, 800 bales from Sanghar at Rs 4900-5100, 600 bales from Rohri at Rs 5450, 2000 bales from Sukkur at Rs 5450, 600 bales from Layyah at Rs 5400, 400 bales from Bakhar at Rs 5425, 400 bales from Fort Abbas at Rs 5500, 800 bales from Janpur at Rs 5500, 400 bales from Chistian at Rs 5500, 800 bales from Haroonabad at Rs 5500, 600 bales from Muzafargarh at Rs 5500, 800 bales from Alipur at Rs 5500, 400 bales from Tonsa Sharif at Rs 5500, 600 bales from Bahawalpur at Rs 5500, 400 bales from Ahmedpur at Rs 5500, 1200 bales from Liaquatpur at Rs 5500-5525, 600 bales from Burewala at Rs 5550, 1200 bales from Rahim Yar Khan at Rs 5550-5600, 1000 bales from Mianwali at Rs 5550-5650, 1000 bales from Khanpur at Rs 5600, 800 bales from Sadiqabad at Rs 5650 and 400 bales from Feroza at Rs 5650, dealers said.