Sustained demand for fine cotton pushed the rates higher on the cotton market on Tuesday in the process of hectic trading, dealers said. The official spot rate was higher by Rs 50 to Rs 6450, they said. In the ready session over 21,000 bales of cotton changed hands between Rs 6500-6700, they said.
In Sindh, seed cotton rates were higher by Rs 100 to Rs 2800-3200 per 40 kg, they said. In the Punjab, phutti prices were up by Rs 150 to Rs 3000-3350, they said. According to the market sources a kind of uncertainty prevailed on the market as buyers were trying to buy cotton at the present rates.
Cotton analyst, Naseem Usman said that cotton production for the current season may be short against the estimate of over 14 million bales. This factor caused panic buying among mills and spinners, other experts said. They said that reports coming up that cotton production likely to come down against the earlier estimate. Last year, just over 10 million bales could be achieved due to several factors, they said.
Other analysts said that most of the buyers were rushed to book big lot deals to replenish their stocks. Other leading world market moved up in line with the local market, he said and adding that current rising trend in local cotton prices may induce growers to grow cotton, instead of other crop.
They said that some month ago, leading growers and farmers were planning to shift from cotton crop to another to earn better profits.
Adds Reuters: ICE cotton futures rose for a second straight session on Monday to a seven-week high on forecasts for strong US crop demand before turning lower before the market closed.
The December cotton contract on ICE Futures hit 70.94 cents a lb earlier in the session before settling down 0.07 cent, or 0.10 percent, at 70.55 cents per lb. Prices of the natural fibre were also supported by higher demand for the US crop. Total futures market volume rose by 755 to 19,022 lots. Data showed total open interest fell 97 to 216,739 contracts in the previous session.
The following deals reported: 1000 bales of cotton from Mirpurkhas at Rs 6500, 2000 bales from Sanghar, 1600 bales from Hyderabad, 2000 bales from Kotri, 7000 bales from Shahdadpur, 5000 bales from Tando Adam, 1000 bales from Moro all finalised at the same level, 400 bales from Burewala at Rs 6700, 200 bales from Haroonabad, 100 bales from Pak Pattan, same number from Vehari and 200 bales from Sahiwal all done at the same rate, they said.