Trade activity improved on the cotton market on Thursday as mills continued forward buying to meet demand, dealers said. The official spot rate picked up Rs 100 to Rs 6,450, dealers said. In Sindh seed cotton prices were at Rs 3100 and Rs 3200 and in Punjab, phutti prices were at Rs 3100 and Rs 3300 per 40 kg, respectively, they said. In ready business, over 12,000 bales of cotton changed hands between Rs 6600 and Rs 6900, they said.
According to the market sources, prices gained modestly on the rising demand by mills and spinners. In the meantime, cotton analyst, Naseem Usman said that in the evening prices turned down in line with the soft trend in the international markets. Sporadic rains in some parts of cotton belt may hinder supply of seed cotton particularly from Punjab, he added.
Reuters adds: ICE cotton futures fell to their lowest in a week on Wednesday, on expectations of small showers in West Texas, the top US producing region, and better weather in India, the world’s largest cotton producer. The following deals were reported: 800 bales of cotton from Hala at Rs 6600/6700, 2000 bales from Mirpurkhas at Rs 6600/6700, 2400 bales from Shahdadpur at Rs 6600/6700, 2000 bales from Sanghar at Rs 6600/6700, 400 bales from Naoabad at Rs 6650, 1600 bales from Tando Adam at Rs 6650/6700, 600 bales from Jhole at Rs 6650/6700, 1000 bales from Hyderabad at Rs 6675/6700, 200 bales from Kabirwala at Rs 6900, 200 bales from Alipur at Rs 6900, 200 bales from Vehari at Rs 6900, 100 bales from Burewala at Rs 6900, 200 bales from Rahim Yar Khan at Rs 6900 and 200 bales from Renalakhurd at Rs 6900, dealers said.