A kind of firmness prevailed on the cotton market on Monday as seed cotton prices picked up amid tight supply position, dealers said. The official spot rate was unchanged at Rs 5,250, dealers said. In Sindh, seed cotton inferior type was unchanged at Rs 2000 while the fine type was higher by Rs 100 to Rs 3000 and in the Punjab, rates of low quality was inert at Rs 2000 and the best type gained Rs 100 to Rs 3100, they said.
In the ready business, around 5,000 bales of cotton finalised between Rs 5100 and Rs 5600, they said. According to the market sources the ginners were reluctant in selling as they hoping that the prices to go up due to tight supply position. They said that in India prices are stable owing to said reason. Cotton analyst, Naseem Usman said that in the local market prices to show firmness if the mills make forward buying to get purpose of better quality.
He attributed the slackened activity to financial crisis among leading buyers as a huge stock of unsold cotton yarn is a big concern. In general, Chinese economic activity is still in wood and particular, other parts of the world is following the same path, he added. The following deals reported, 400 bales of cotton from Koorandi at Rs 5350, 400 bales from Sui Gas at Rs 5350, 600 bales from Khairpur at Rs 5350, 400 bales from Bahawalpur at Rs 5000, 200 bales from Kachiwal at Rs 5125, 600 bales from Haroonabad at Rs 5200, 400 bales from Fort Abbas at Rs 5225, 800 bales from Mianwali at Rs 5550 and 800 bales from Rahim Yar Khan at Rs 5600, dealers said.