The volume of business improved on the cotton market on Wednesday following the persistent demand by mills and spinners, dealers said. 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 10,000 bales finalised between Rs 4750-5500, they said.
According to the market sources, volume of business improved as needy spinners indulged in panic buying to replenish their stock. In the meantime, they have failed to get quality lint due to short supply, they said. Cotton analyst, Naseem Usman attributed the rise in volume of business to export of cotton yarn to China. He further said that Pakistan has exported around 130 tonnes of cotton yarn to China.
He further said that the ginners have only 500,000 bales of unsold cotton but major part of unsold cotton is low quality. On the one hand, the country is facing shortly supply of fine type, on the other hand, demand for textile products remained on the decline due to world recession, other experts said.
Reuters adds: Cotton futures traded lower on Tuesday on expectations China will soon begin offloading its huge reserves and in cautious trading ahead of the US government’s planting intentions report on Thursday.China’s government may begin selling from its reserves from mid-April, with a priority to offer good-quality cotton, including imported fibre.
The front-month May contract on ICE Futures US settled down 0.42 cent, or 0.73 percent, at 57.38 cents per lb after trading between 57.22 and 57.94 cents.
The following deals finalised: 600 bales of cotton from Shahdadpur at Rs 4750, 370 bales from Salehpat at Rs 5375, 4113 bales from Dharki at Rs 5485-5500, 2862 bales from Ghotki at Rs 5500, 218 bales from Khanewal at Rs 4500, 600 bales from Sadiqabad at Rs 5400-5500 and 1200 bales from Rahim Yar Khan at Rs 5400-5500, they said.