A strong demand by mills and spinners helped the rates to hold overnight firmness on the cotton market on Wednesday in the process of trading, dealers said. The official spot rate held the overnight level at Rs 5,450 dealers said. In the Punjab, seed cotton prices were at Rs 3000 and Rs 3200, they said. In the ready business, nearly 6000 bales of cotton changed hands between Rs 3400 and Rs 5500, they said.
Market sources said that mills and spinners failed to make big deals due to short supply of fine quality. The ginners were not keen to sell cotton at present on expectations of better rates in near future, they said. In the meantime, cotton analyst, Naseem Usman said that the needy buyers could not keep themselves away from the market, indulged in buying to meet their urgent needs. In fact, the local market was influenced by track in the international market, he added.
Reuters adds: Cotton futures rose on Tuesday for a second session to the highest level in over three months on buying from speculators and index funds, amid a weak dollar and overall uptrend in commodities. Speculators and index funds are buying across the commodities board with cotton being one of them, said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi. The July cotton contract on ICE Futures US settled up 0.84 cent, or 1.35 percent, at 63.07 cents per lb, after trading as high as 63.22 cents, its highest since January 6
Total futures market volume fell by 28,106 to 41,915 lots. Data showed total open interest fell 1,383 to 193,791 contracts in the previous session. The following deals reported: 200 bales of cotton from Hyderabad at Rs 3400, 400 bales from Ghotki at Rs 5550, 200 bales from Hasilpur at Rs 5500, 2000 bales from Rahim Yar Khan at Rs 5600-5700, 500 bales from Sadiqabad at Rs 5500, 1400 bales from Feroza at Rs 5550, 200 bales from Mailsi at Rs 5150, 200 bales from Fort Abbas at Rs 5350 and 420 bales from Faqirwali at Rs 5400, they said.