Cotton market: prices rise due to fresh buying by mills

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Fresh buying interest by mills and spinners caused an increase in the rates on the cotton market on Friday, dealers said. The official spot rate was higher by Rs 50 to Rs 5,250, dealers said. In Sindh, seed cotton prices were at Rs 2200 and Rs 2900 and in the Punjab, rates were at Rs 2200 and Rs 3000, they said. In the ready business, around 13,000 bales of cotton finalised between Rs 4900 and Rs 5600, they said.

Market sources said that no major change was seen during the day, just modest rise in prices due to new purchasing by mills and spinners. Cotton analyst, Naseem Usman, said that needy mills managed to make new deals to cover their immediate needs. Short supply of fine quality and falling demand in the international market creating uncertainties among the textile businessmen, he added.

Adds Reuters: Cotton futures sold off on Thursday after a weekly report showed a sharp drop in US export sales, erasing gains from the prior session, which saw a bout of buying ahead of the release of the US government’s monthly supply and demand estimates. March cotton on ICE Futures US settled down 1.04 cent, or 1.6 percent, at 63.77 cents per lb. It traded within a range of 63.58 cents and 64.84 cents a lb.

The following deals reported, 400 bales from New Saeedabad at Rs 5100, 400 bales from Rohri at Rs 5450, same number from Salehpat at the same rate, 600 bales from Ghotki at Rs 5575, 200 bales from Dunyapur at Rs 5025, 400 bales from Rajanpur at Rs 5050, 600 bales from Bahawal Nagar at Rs 5100, 200 bales from Chistian at Rs 5250, 800 bales from Fort Abbas at Rs 5375-5400, 400 bales from Lodhran at Rs 5400, 600 bales from Mian Chano at Rs 5400, 5000 bales from Ahmedpur, 800 bales from Yazman Mandi, 400 bales from Haroonabad at the same rate, 800 bales from Mianwali at Rs 5475-5550, 1400 bales from Rahim Yar Khan at Rs 5600, 1000 bales from Khanpur at Rs 5600 and 400 bales from Feroza at Rs 5610, dealers said.

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