Cotton prices maintained slight gains amid restricted selling by ginners, dealers said on the local market on Monday. The official spot rate was unchanged at Rs 6350, 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 7,000 bales of cotton changed hands between Rs 6000-6700, they said. Commenting on the limited selling by the ginners, cotton analyst, Naseem Usman said that wait-and-see mood prevailed ahead of announcement of incentives' package for exports, including textile sector and Heimtextil fair starting from today. They also observed that the trading activity revived due to Heimtextil fair, the biggest trade exhibition of textile products, the textile fair is beginning in Frankfurt, Germany. Other experts said that cotton prices maintained rising trend on the week's opening session and it is most likely that appreciation may continue in line with the global track.
They said that short production of cotton crop causing panic buying by spinners as the gap has widened between production and consumption. Reports are suggesting that spinners will have to import around 4.5 million bales of cotton to meet their consumption demand but so far nearly 1.5 million bales have been imported from the US and other countries.
The following deals reported: 400 bales from Shahpur Chakar sold at Rs 6000, 400 bales from Gup Chani at Rs 6000, 425 bales from Lodhran at Rs 6425, 2700 bales from Khanewal at Rs 6500, 400 bales from Kachiwala at Rs 6500, 400 bales from Fort Abbas at Rs 6540, 600 bales from Vehari at Rs 6625, 1000 bales from Rahim Yar Khan at Rs 6650 and 600 bales from Yazman Mandi at Rs 6700, dealers said.