Rates picked up on the cotton market on Tuesday as some leading spinners showed interest in fresh deals, dealers said. The official spot rate was unchanged at Rs 6800, 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 5975-7000, they said.
Cotton analyst, Naseem Usman said that despite dwindling cotton stock and rising rates, some needy mills and spinners made buying of fine quality. Recently, prices came down in China as it sold 27,200 tonnes of cotton at auction of state reserves.
Other brokers said that the ginners obliged mills and spinners as rates of cotton were matching with their psychological levels. The ginners have only 500,000 bales of cotton so they don't want to sell quality lint at present rates, considering future deals to be profitable in the coming days, they said.
The New York cotton futures were lower on Tuesday. The following deals reported: 800 bales from Rohri sold at Rs 5975, same figure from Fort Abbas at Rs 6800, 400 bales from Dharanwala at the same rate, 400 bales from Mohammadpur Dewan at Rs 6825 and 600 bales from Faqirwali finalised at Rs 6800-7000, they said.