Trade activity improved on the cotton market on Tuesday as needy mills showed interest in fresh buying of lint cotton, dealers said. The official spot rate unchanged at Rs 6750, they said. In ready session, over 4000 bales of cotton changed hands between Rs 6800 and Rs 7000. Market sources said that after the Pakistan Cotton Ginners' Association (PCGA) report, new buying interest emerged from the spinners.
According to the cotton Ginners Forum, cotton production for year 2016-17 ended with a total output rising by 10 percent to 10.7 million bales. Reports showed that the cotton production appreciated from last year's level of 9.7 million bales, but the production was higher because during 2015-16 fiscal year registered a massive shortfall of 34 percent a year ago. The cotton production has not shown sign of any significant improvement.
Cotton analyst, Naseem Usman said that the ginners have little stock of unsold cotton, so it is most likely that mills and spinners both may take interest in fresh buying. Following deals reported: 600 bales from Khanpur at Rs 7000, 2000 bales from Rahim Yar Khan at the same rate, 1000 bales from Multan at Rs 6960 and 800 bales from Vehari at Rs 6800