A fresh buying interest by spinners and mills helped the rates to keep present levels in the process of trading, dealers said on Tuesday. The official spot rate was unchanged at Rs 5,300 dealers said. In Sindh, seed cotton prices were at Rs 2200-2400, and in Punjab prices were at Rs 2400 and Rs 2900, they said. In the ready business, nearly 5000 bales finalised between Rs 4600-5500, they said.
Market sources said that some needy spinners indulged in fresh buying of lint cotton. Cotton analyst, Naseem Usman, said that there is shortage of lint cotton and this factor is helping the rates to keep present levels. To meet the local demand, the spinners have imported approximately 3.5 million bales as they have only 500,000 to 600,000 bales of cotton, which is not enough to meet requirements, other brokers said.
Reuters adds: Cotton futures settled up slightly on Monday, helped by a weaker dollar as traders remained cautious ahead of the US government’s much awaited planting intentions report on Thursday. The front-month May contract on ICE Futures US settled up 0.08 cent, or 0.14 percent, at 57.80 cents per lb, after trading in the range of 57.20 and 57.99 cents a lb.
The following deals finalised: 800 bales of cotton from Toba Tek Singh at Rs 4600, 200 bales from Bahawal Nagar at Rs 5200, same figure from Chistian at the same prices, 1700 bales from Fazilpur at Rs 5400, 1400 bales from Rahim Yar Khan at Rs 5400-5500 and 400 bales from Rahanpur at Rs 5500, they said.