Firmness prevailed on the cotton market on Saturday as needy mills did purchasing of quality lint to replenish their stock, dealers said. The official spot rate was unchanged at RS 6750, they said. In Punjab prices of phutti were unchanged at Rs 3750-3800, as per 40 kg, they said. In ready session, nearly 3000 bales of cotton sold at Rs 6725-7050.
Cotton analyst, Naseem Usman said that some needy mills and spinners started buying of lint cotton to meet their requirements. He also said that in the last sessions, slow exports of cotton yarn coupled with rising cotton prices forced mills to away from the new deals, whereas, the ginners were reluctant to dispose of their stocks at current rate. Though, there was shortage of quality cotton, some experts observed. Partial shortage of cotton crop is going on in the some areas of Sindh.
However, growers fear that water shortage may harm next season cotton crop, experts said. According to the Pakistan Cotton Ginners Association (PCGA) report till March 15, issued here, showing over 10 million bales of cotton reached at ginneries and figures also depicting an increase of about 10 percent against the last year. The ginners have only 471,000 bales of cotton, which may not enough to meet mills and spinners' requirements, other brokers said.
Besides, China has set its 2017-2019 target price for cotton in the top growing region of Xinjiang at 18,600 yuan ($2,694.95) a tonne, unchanged from a previous goal, the National Development and Reform Commission (NDRC) said on Friday. The target price is set every three years but can be adjusted if there are major changes in the cotton market, the state planner said.
China in 2014 started a three-year trial on cotton target pricing in Xinjiang and has decided to deepen reform this year. The following deals reported: 1000 bales of cotton from Lodhran at Rs 7050, 400 bales from Liaquatpur at Rs 7000, same figure from Bahawalpur at Rs 6950, 600 bales from Norpur Noranga at Rs 6925, 200 bales from Daranwala at Rs 6800 and 500 bales from Alipur at Rs 6725 they said.