Prices recovered overnight losses on the cotton market on Friday as spinners indulged in forward buying amid short supply position, dealers said. The official spot rate recovered Rs 100 to Rs 5,650 dealers said. In the Punjab, prices showed no change at Rs 3100 and Rs 3400, they said. In the ready business, around 5000 bales of cotton changed hands between Rs 4500-6000, they said. Commenting on the see-saw trade these days, some experts said that tug-of-war is persisted among buyers and sellers over the prices.
Cotton analyst, Naseem Usman said that the Trading Corporation of Pakistan (TCP) sold nearly 3500 bales of cotton to mills, price ranging Rs 5810-5885. The ginners, who have limited stock of quality lint, were not prepared to sell at the current rates despite imports from cotton producing countries. During the last one month, around 35,000 tonnes of cotton were imported to meet the demand.
Talking to Business Recorder on phone the Pakistan cotton Ginners Association (PCGA), chairman Shahzad Ali Khan said the rise in prices, propelling growers to bring more areas under the cotton cultivation. But, unfortunately, cotton business is not in a proper manner or moving without any direction, so we feel the government come forward to save textile industry and also announce a comprehensive cotton policy as early as possible, he said.
Reuters adds: Cotton futures rose on Thursday, snapping three days of declines with support from slightly positive weekly US export sales data and a broad uptick across the commodities sector. Prices of the natural fiber have a little support around the 60-cent level, said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi.
China’s cotton reserve auctions are off to a rapid start, outpacing last year’s sales in the first week alone, a sign of a shortage of high-grade supplies in the world’s top textile market, the US government said a report published on Thursday. The front-month July cotton contract on ICE Futures US settled up 0.13 cent, or 0.21 percent, at 60.73 cents per lb. It traded within a range of 60.55 and 61.37 cents a lb.
The following deals reported: 1650 bales of cotton from Shahdadpur at Rs 4500 and Rs 4550, 585 bales from Hala at Rs 5500, 600 bales from Kasso Wal at Rs 5350, 400 bales from Bakhar at Rs 5450, same figure from Shaher Sultan at Rs 5650 and 1000 bales from Layyah at Rs 6000 (contiditional), dealers said.