Cotton market; strong buying by mills pushes rates higher

Renewed buying by mills caused modest rise in prices on the cotton market on Monday in the process of trading, dealers said. The official spot rate was unchanged at Rs 8250, they added. Prices of seed cotton in Sindh gained at Rs 3800-3900, in the Punjab rates followed the same pattern showing steep increase at Rs 3600-3900, and in Balochistan, prices of seed cotton were up at Rs 3900-4000, they said.

In ready session, around 23,000 bales of cotton finalised between Rs 8200-8450, they said. Market sources said that quality factor propelled mills to keep buying of quality lint, causing rise in rates. Cotton analyst, Naseem Usman said that few exporters inquired about the rates only, did not take part in fresh buying of cotton.

Naseem Usman also said that hovering apprehensions of likely rainstorm in US cotton belt, likely pushed the rates higher and it is expected that prices may go up in the coming days. He said that prices of cotton yarn are not lifting from the present levels, but, polyester fibre price was higher by Rs 3 to Rs 198 per kg.

In the meantime, the Cotton Crop Assessment Committee (CCAC) to meet on Wednesday to estimate about the cotton production, he added. Cotton prices were up in the international markets, particularly in India where rates went up sharply due to strong demand, he added.

The following deals reported: 1000 bales of cotton from Tando Adam at Rs 8250/8300, 1200 bales from Shahdadpur at Rs 8250/8300, 1200 bales from Sanghar at Rs 8250/8300, 1000 bales from Mirpurkhas at Rs 8200/8350, 4000 bales from Nawabshah at Rs 8300, 4000 bales from Saleh Pat at Rs 8300, 3000 bales from Rohri at Rs 8300, 2000 bales from Khairpur at Rs 8300, 400 bales from Rajanpur at Rs 8450, 400 bales from Khanewal at Rs 8400, 600 bales from Kabirwala at Rs 8375/8400, 200 bales from Mian Channu at Rs 8400, 800 bales from Chichawatni at Rs 8400, 400 bales from Hasilpur at Rs 8250/8375, 200 bales from Vehari at Rs 8375, 400 bales from Burewala at Rs 8275/8350, 600 bales from Haroonabad at Rs 8300/8350, 1200 bales from Tonsa Shareef at Rs 8400 and 800 bales from Bahawal Nagar at Rs 8350, they said, they said.