Firmness prevailed on the cotton market on Monday amid brisk trade activity, dealers said. The official spot rate was unmoved at Rs 6150, dealers said. In Sindh, seed cotton prices were at Rs 2200-3200, they said. In Punjab, phutti rates were up Rs 100-200 at Rs 3000 and Rs 3600, as per 40 kg, they added. In the ready session, approximately 50,000 bales of cotton changed hands between Rs 5500 and Rs 6400, they said.
Market sources said that sustained buying of quality lint helped the prices to keep present levels. Volume of business showed significant increase due to persistent buying interest among mills and spinners, they said. Cotton analyst, Naseem Usman said that ginners and growers were trying to avail an opportunity of earning better profit. The main factor is prevailing uncertainty over the exports of Indian cotton amid border tension between the two neighbouring countries, he added.
According to reports, exports of one million bales of cotton from top producer India have been delayed after a government move to ban high-value currency notes prompted farmers, who prefer cash payments, to postpone sales. The supply crunch has driven up prices in India to level higher than in the global market and could force buyers to switch to other producers like the United States, Brazil and African countries. It could also curb India\’s total exports in the 2016/17 year marketing year that started on October 1.
The following deals reported: 1400 bales from Shahdadpur at Rs 5500-6000, 200 bales from Sakrand at Rs 6000, 2000 bales from Khairpur at Rs 6175-6200, same figure from Salehpat at 6250, 1200 bales from Rohri at Rs 6200-6250, 1600 bales from Ghotki at Rs 6350-6400, 2000 bales from Dharki at the same rate, 800 bales from Mirpur Mathalo, 600 bales from Khanpur Mehar at the same rate, 3400 bales from Mianwali at Rs 5975-6100, 800 bales from Muridwali at Rs 6000, 1000 bales from Burewala done at the same rate, 600 bales from Chichawatni at Rs 6100, same figure from Kassowal at Rs 6150, same number from Tiba Sultan, 800 bales from Mian Chano, 1200 bales from Vehari all finalised at the same price, same number from Fazilpur at Rs 6150-6200, 2200 bales from Rajanpur at the same rate, 800 bales from Fort Abbas at Rs 6300, 600 bales from Chistian, 1800 bales from Faqirwali all finalised at the same rate, 3400 bales from Hroonabad at Rs 6300-6350, 800 bales from Yazman Mandi at Rs 6350, 2400 bales from Khanewal, 600 bales from Hasilpur, 3600 bales from Rahim Yar khan, 3400 bales from Sadiqabad, 3200 bales from Kot Sabzal all done at the same rate and 2600 bales from Ahmedpur at Rs 6350-6400, dealers said.