Cotton prices soar on slow business

An upward trend persisted on the cotton market on Saturday in the process of slow business activity, dealers said. The official spot rate picked up Rs 50 to 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 3,000 bales of cotton changed hands between Rs 5550-6675, they said. According to the market sources, small business activity was witnessed as the ginners were not ready to sell cotton at the present rates despite higher prices. The ginners were confident that prices rise further due to surging prices in the international market, they observed.

Cotton analyst, Naseem Usman commenting on the latest development in market, said that higher trend in the globe, influencing the local rates and it may continue in the near future. Other brokers said that the private sector estimate showing that the 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 edged higher on Friday on investor buying after slipping and the natural fibre recorded its best week since mid-November. The March cotton contract on ICE Futures US has risen about 4.7 percent this week, the biggest climb since the week ended November 18. The contract had breached the key 75-cent level for the first time since August 9 on Thursday. The following deals reported: 400 bales from Sanghar at Rs 5550, 1000 bales from Sadiqabad sold at Rs 6600, 600 bales from Rahim Yar Khan sold at the same rate, 400 bales from Maroot at Rs 6650, same figure from Hasilpur at the same price and 800 bales from Khanpur at Rs 6675, dealers said.