Trade activity improved on the cotton market on Friday after an emergence of fresh buying interest by mills and spinners, dealers said. The official spot rate retained overnight levels at Rs 5,350, dealers said. In Sindh, seed cotton prices were 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 17,000 bales of cotton finalised between Rs 5300 and Rs 5600, they said. Market sources observed that some ginners showed flexibility and mills and spinners lay hands over the fine type, but could not go in a big way for quality reason.
Cotton analyst, Naseem Usman, said that rising speculations of short crop coupled with concern over the quality of cotton induced some buying from needy mills. Explaining the current situation, he said that reports from cotton belt, particularly in Punjab, indicating that very small unpicked seed cotton (phutti) has been left, causing uncertainties among buyers. The other factor is that quality of unpicked phutti is also not good as the current season crop was badly damaged by monsoon rains and flood, other experts said. They observed that the ginners are more concerned over the quality for the remaining crop. They also said that if the dollar showed it’s strength versus the rupee, this can aided the prices to improve with slight pace.
Reuters adds: The New York cotton market was closed on Thursday for the Thanksgiving Day holiday. The following deals reported, 600 bales of cotton from Nawabshah at Rs 5300, 400 bales from Daur at Rs 5300, 1000 bales from Khairpur at Rs 5375-5400, 800 bales from Chistian at Rs 5300-5350, 1000 bales from Bahawal Nagar at Rs 5350, 600 bales from Yazman Mandi at Rs 5350-5475, 2400 bales from Haroonabad at Rs 5350-5475, 1000 bales from Bahawalpur at Rs 5400, 400 bales from Hasilpur at Rs 5400, 800 bales from Fort Abbas at Rs 5400-5450, 400 bales from Faqirwali at Rs 5425, 1000 bales from Ahmedpur at Rs 5440-5450, 800 bales from Shadan Lund at Rs 5450, 600 bales from Tonsa Sharif at Rs 5450, 400 bales from Burewala at Rs 5550, 2000 bales from Mianwali at Rs 5550-5600 and 3000 bales from Rahim Yar Khan at Rs 5575-5600, dealers said.