Prices maintained firm posture despite steady arrivals of seed cotton on Wednesday in the process of trading, dealers said. The official spot rate maintained overnight level at Rs 6100, they said. In the ready session, around 25,000 bales of cotton changed hands between Rs 6175-6300, they said. In Sindh seed cotton prices gained modestly at Rs 2800-3050, in the Punjab rates were up by Rs 50 at Rs 2900-3250, as per 40 kg, they said.
Market sources said that mills and spinners were laying hands over the best quality of cotton because they have to keep buying to replenish their stock. They said that the mills were trying to buy as much they can buy, in the meantime, they observed that the ginners raised asking prices to take advantage of availability of lint. Cotton analyst, Naseem Usman said that as a whole rates are steady the world over, this factor is helping the local prices to maintain firm posture.
Prices of quality lint may not fall steeply because surge in dollar's rate likely to give a boost to the local prices, other brokers said. Adds Reuters: ICE cotton futures settled flat on Tuesday after rising to near a one-week high on concerns about Texas weather, with the market awaiting a monthly crop supply and demand report from the US government on Thursday. Cotton contracts for December were unchanged from the previous session at 68.95 cents per lb. It earlier touched 69.88 cents a lb, the highest since October 4.
The September World Agricultural Supply and Demand Estimates (WASDE) report projected 21.76 million bales of US cotton output for the 2017-2018 crop year, higher than the 20.55 million bales of production estimated in August.
The following deals were reported to have hanged hands on the ready counter: 1600 bales from Saleh Pat at Rs 6250/6300, 400 bales from Ghotki at Rs 6300, 400 bales from Dharki at Rs 6300, 1000 bales from Rohri at Rs 6200/6250, 2000 bales from Khairpur at Rs 6225/6250, 200 bales from Kabirwala at Rs 6300, 400 bales from Sher Sultan at Rs 6300, 1400 bales from Khanewal at Rs 6250/6300, 200 bales from Ghazighat at Rs 6275, 200 bales from Shadan Lund at Rs 6275, 1000 bales from Vehari at Rs 6250/6275, 1000 bales from Shujabad at Rs 6250/6275, 1000 bales from Burewala at Rs 6250, 400 bales from Alipur at Rs 6250, 400 bales from Hasilpur at Rs 6250, 200 bales from Jalalpur at Rs 6250, 200 bales from Kassowal at Rs 6250, 200 bales from Ahmedpur East at Rs 6250, 2200 bales from Bahawalpur at Rs 6200/6250, 600 bales from Chichawatni at Rs 6200/6250, 2200 bales from Mianwali at Rs 6175/6250, 1400 bales from Bahawal Nagar at Rs 6200/6225, 1000 bales from Layyah at Rs 6200, 800 bales from Fort Abbas at Rs 6200, 400 bales from Bakhar at Rs 6200, 200 bales from Yazman Mandi at Rs 6200, 400 bales from Karor Pakka at Rs 6175 and 100 bales from Toba Tek Singh at Rs 6175, they said.