No respite was seen in increase of quality lint prices on the cotton market on Friday, dealers said. The official spot rate was unchanged at Rs 5,500 dealers said. In the Punjab, seed-cotton prices were at Rs 3000 and Rs 3200, they said. In the ready business, around 7000 bales of cotton changed hands between Rs 4000 and Rs 5800, they said. Market sources said that since prices started gaining in the world market, the ginners stop selling and increased rates to opportunity of time.
Cotton analyst, Naseem Usman said that emergence of buying interest in cotton yarn induced sentiments. He attributed increase in rates to short supply and rise in the world market. Report showing that India is facing shortage of cotton, an encouraging news appeared that China will start selling cotton but analysts believe it would have little impact on the local markets.
Reuters adds: Cotton futures snapped a three-day rally on Thursday, recovering from an initial sell-off driven by profit booking to settle marginally lower, a day after touching the highest in 2016. Traders also took stock of weekly US government data, which showed sales of upland cotton totalled 104,800 running bales for the week ending April 15, up 24 percent from the previous week, but down 10 percent from the prior 4-week average.
China’s cotton futures extended a rally on Thursday as speculative buying pushed prices to the highest in more than a year in anticipation of tight supplies after Beijing delayed sales from its state cotton reserves, traders said. The July cotton contract on ICE Futures US settled down 0.08 cent, or 0.12 percent, at 64.01 cents per lb, after trading within a range of 62.98 and 64.57 cents a lb.
The following deals reported: 200 bales of cotton from Sanghar at Rs 4000, 4700 bales from Tando Adam at Rs 4100-4900, 200 bales from Mehrabpur at Rs 5185, 200 bales from Layyah at Rs 5000, 400 bales from Bakkhar at Rs 5400, 600 bales from Bahawalpur at Rs 5500 and 200 bales from Rajanpur at Rs 5800, they said.