The official spot rate jumped on the cotton market on Wednesday in the process of moderate trade activity, dealers said. The official spot rate maintained rising trend, gaining Rs 200 to Rs 6,650, dealers said. In Sindh seed cotton prices showed no change at Rs 3400 and Rs 3500 per 40 kg, respectively, In Punjab, rates also inert at Rs 3400 and Rs 3600, they said.
In ready business, around, 10,000 bales of cotton changed hands between Rs 6670 and Rs 7125, they said. Market sources said that some leading mills were not ready to oblige the ginners, who were trying to increase asking prices, to take advantage of time. Cotton analyst, Naseem Usman said that profit-taking may cause decline in the prevailing rates, as the mills have covered their position. Other factor, which could push the rate down slightly is declining trend in the international market.
Reuters adds: ICE cotton futures fell for the second straight session on Tuesday, weighed down by a stronger US dollar amid broad weakness in grains markets. The following deals were reported: 2000 bales of cotton from Hyderabad at Rs 6700/6850, 1400 bales from Mirpurkhas at Rs 6750/6850, 3000 bales from Sanghar at Rs 6750/6850, 200 bales from Kunri at Rs 6800, 1000 bales from Shahdadpur at Rs 6800/6850, 2000 bales from Tando Adam at Rs 6800-6900, 600 bales from Burewala at Rs 6950, 200 bales from Vehari at Rs 6950, 400 bales from Chichawatni at Rs 7000, 400 bales from Mian Chano at Rs 7000, 600 bales from Khanewal at Rs 7000, 200 bales from Pak Pattan at Rs 7000 and 200 bales from Haroonabad at Rs 7125 dealers said.