Spinners and mills indulged in forward buying of fine cotton to cover their requirements, dealers said on the cotton market on Wednesday. The official spot rate was unchanged at Rs 6450, they said. In the ready session over 15,000 bales of cotton changed hands between Rs 6500-6700, they said.
In Sindh, seed cotton rates were at Rs 2800-3250 per 40 kg, they said. In the Punjab, phutti prices were at Rs 3000-3300, they said. Better flow of phutti (seed cotton) coupled with huge availability of quality lint helped generate trading activity, they added. Strong demand from spinners likely to persist in the coming days, they added. Most spinners are running out of cotton as no carryover stock from previous crop are there while a delay in phutti picking caused by recent rains affected the supply, they said.
Commenting on the sustained buying of cotton, cotton analyst, Naseem Usman said that cautious spinners and mills were busy in purchasing of fine cotton to cover forward buying ahead of Eid-ul-Azha holidays. 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. The US Department of Agriculture’s World Agricultural Supply and Demand Estimates (WASDE) report and the weekly US export sales data will be released on Thursday.
The following deals reported: 800 bales of cotton from Mirpurkhas at Rs 6500, 2000 bales from Sanghar, 1600 bales from Hyderabad, 800 bales from Kotri, 3200 bales from Shahdadpur, 2800 bales from Tando Adam, 200 bales from Noakot 400 bales from Jhole and 200 bales from Moro all finalised at the same level, 1000 bales from Burewala at Rs 6700, 800 bales from Haroonabad, 100 bales from Sahiwal, 300 bales from Vehari and 200 bales from Chichawatni all done at the same rate, they said.