Cotton spot rate rises further

Cotton prices improved further on the local market on Tuesday in the process of trading activity, dealers said. The official spot rate was higher by Rs 50 to Rs 8300, they added. Prices of seed cotton in Sindh gained Rs 100 to Rs 3800-4000, in the Punjab rates followed the same pattern showing steep increase at Rs 3700-3900, and in Balochistan, prices of seed cotton were at Rs 3800-4000, they said.

In ready session, around 20,000 bales of cotton finalised between Rs 8300-8500, they said.

Cotton analyst, Naseem Usman said that as a whole prices were firm due to persisting demand for the quality cotton, easy supply of seed cotton, helped improved availability of fine cotton. But, one thing is confusing as the International Cotton Advisory Committee (ICAC) said that cotton production may be short by 3 percent, but on the other hand, consumption is likely to increase this year, he said.

Other brokers observed that these emerging factors may cause jump in the cotton prices in the local market.

Cotton prices were mixed in the international market, they said.

The following deals reported: 1000 bales of cotton from Shahdadpur at Rs 8350, 2000 bales from Tando Adam at Rs 8350/8400, 1600 bales from Sanghar at Rs 8300/8350, 800 bales from Mirpurkhas at Rs 8325, 400 bales from Hala at Rs 8350, 400 bales from Sinjoro at Rs 8350, 400 bales from Sakrand at Rs 8350, 200 bales from Daur at Rs 8350, 1000 bales from Nawabshah at Rs 8300/8350, 1000 bales from Saleh Pat at Rs 8350/8450, 2000 bales from Khairpur at Rs 8350/8400, 600 bales from Khanewal at Rs 8400/8500, 400 bales from Bahawal Nagar at Rs 8350/8450, 200 bales from Layyah at Rs 8450, 200 bales from Arifwala at Rs 8450, 400 bales from Chichawatni at Rs 8400/8450, 600 bales from Haroonabad at Rs 8350/8450, 400 bales from Mian Channu at Rs 8425/8450, 400 bales from Tounsa Shareef at Rs 8450, 200 bales from Vehari, 200 bales from Burewala, 200 bales from Dera Ghazi Khan, 200 bales from Faqeerwali, 200 bales from Lodhran, 200 bales from Samandri, 400 bales from Sahiwal and 200 bales from Darahwala all sold at Rs 8400, they said.