Rates were firm on the cotton market on Friday in the process of restricted buying by mills and spinners, dealers said. The official spot rate was unchanged at Rs 6300, dealers said. In Sindh, seed cotton prices were unmoved at Rs 2800-3350, they said. In Punjab, phutti rates held the overnight levels at Rs 2800 and Rs 3550, as per 40 kg, they added.
In the ready session, around 10,000 bales of cotton changed hands between Rs 6100-6700, they said. Cotton analyst, Naseem Usman said that rates of cotton were up amid tight supply of best quality. Talking to Naseem Usman, Provincial Agriculture Minister of Punjab, Dr Farrukh Javed said that to achieve better production, the cotton growers should refrain from early sowing, the farmers would have to wait for April 15 for new sowing.
Other analysts said that phutti arrivals came down and variety is not so good, so some needy mills and spinners entered the trading ring to meet their demand, he said. The positive development is that after a long gap of time, the yarn is in demand, which may bring some relief for the traders, other experts said. According to private sector estimate, country may achieve 10.54 million bales of cotton, which is not enough for total consumption. They also observed that the trading activity revived due to Heimtextil fair, the biggest trade exhibition of textile products. The textile fair is to be held in Frankfurt, Germany from January 10 to 13, they said.
Reuters adds: ICE cotton futures hit a near-five month high on Thursday before settling marginally lower, pulled down by a bout of profit-taking. The March cotton contract on ICE Futures US breached the key 75 cent level for the first time since August 9 and hit a session-high of 75.37 cents per lb.
The following deals reported: 600 bales from Dharki at Rs 6600/6700, 400 bales from Mianwali at Rs 6100, 600 bales from Pir Mehal at Rs 6300, 400 bales from Haroonabad at Rs 6400, 400 bales from Bhawalpur at Rs 6425, 200 bales from Chistian at Rs 6450, 1400 bales from Fort Abbas at Rs 6450/6565, 1000 bales from Rahim Yar Khan at Rs 6550 and 2600 bales from Khanpur at Rs 6650/6675, dealers said.