Rates remained firm on the cotton market on Tuesday amid persistent demand by mills and spinners, dealers said. The official spot rate was unchanged at Rs 5,750, dealers said. In Sindh, seed cotton prices were higher by Rs 100 to Rs 2900, similarly, in Punjab phutti rates went up to Rs 3000 and Rs 3250, per 40 kg, respectively, they said.
In ready business, over 10,000 bales of cotton changed hands between Rs 5900 and Rs 6050, they said.
Some expert observed that prices were not fluctuating sharply in the local market because of local and foreign demand.
Sharing the same opinion, cotton analyst, Naseem Usman said that China is buying Pak yarn, instead of purchasing from India. Indian yarn rates are higher, so, China showed interest in local yarn, which may help in increasing the rates in the local marker.
Predictions about the heavy rains in cotton belt keeping cotton trader under pressure, hovering fears of damage of crop or quality, he said. Besides, to support farmers, the Trading Corporation of Pakistan (TCP) is likely to start buying lint from ginners, other analysts said.
Reuters adds: ICE cotton futures jumped nearly 3 percent on Monday, touching the highest level in more than a year on technical buying after prices of the fibre broke through the key 63.50 to 66.50 cents range, amid concerns over hot and dry weather conditions across production regions.
The following deals were reported: 200 bales from Golarchi at Rs 5900, 400 bales from Hala at Rs 5900, 1000 bales from Tando Adam at Rs 5900/5950, 2200 bales from Shahdadpur at Rs 5900/5950, 500 bales from Tando Muhammad Khan at Rs 5900/5950, 600 bales from Mirpurkhas at Rs 5900/5950, 1200 bales from Hyderabad at Rs 5900/5950, 2200 bales from Sanghar at Rs 5900/5950, 300 bales from Samundri at Rs 6050, 100 bales from Chichawatni at Rs 6050, 400 bales from Gojra at Rs 6050, dealers said.