The ginners showed some reluctance over finalising deals with the mills at the present rates, dealers said on the cotton market on Thursday. 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 were at Rs 2300 and Rs 3050, they said. In the ready business, the deals of over 12,000 bales of cotton finalised between Rs 5350 and Rs 5750, they said.
According to the market sources, mills were active in fresh buying but the ginners were shy of making deals at the present rate. Cotton analyst, Naseem Usman, said that the mills were keen to buy fine variety at the present rates to compete with the global market.
Reuters adds: ICE cotton futures rose to a one-month high on Wednesday, posting their largest single-day gains in six weeks, as forecasts for rains with the potential to disrupt harvest in Texas, the top-producing state prompted short-covering. March cotton on ICE Futures US settled up 1.34 cent, or 2.16 percent, at 63.28 cents per lb, after trading as high as 63.66 cents a lb, the highest since October 22. That marked the sharpest single-day gain since October 13.
Total futures market volume rose by 17,445 to 30,361 lots. Data showed total open interest fell 1,231 to 170,519 contracts in the previous session. The following deals reported, 1000 bales of cotton from Khairpur at Rs 5350-5400, 1000 bales from Salehpat at Rs 5450-5475, 400 bales from Hasilpur at Rs 5300, 600 bales from Faqirwali at Rs 5350, 200 bales from Sahiwal at Rs 5350, 1000 bales from Haroonabad at Rs 5350-5400, 1400 bales from Yazman Mandi at Rs 5400-5450, 600 bales from Layyah at Rs 5450, 1000 bales from Ahmedpur at Rs 5450, 600 bales from Fort Abbas at Rs 5450, 1000 bales from Rahim Yar Khan at Rs 5600 and 1000 bales from Mianwali at Rs 5600-5750, dealers said.