Some leading mills showed interest in fresh buying on the cotton market on Monday in the process of trading activity, dealers said. The official spot rate was unchanged at Rs 8,800, they added. Prices of seed cotton in Sindh were at Rs 3000-4100, in the Punjab seed cotton prices were at Rs 3600-4200 and in Balochistan, rates of seed cotton were at Rs 3600-4250, they said. In the ready session, over 11,000 bales of cotton changed hands between Rs 8250-9100, they said. Market sources said that the mills showed interest in fresh buying of lint cotton at the present rates after lower-than-expected cotton arrivals. The Pakistan Cotton Ginners' Association (PCGA) released cotton arrivals figure at 8.7 million bales, showing a modest decline against the last year.
Cotton analyst, Naseem Usman said that on the one hand, the ginners were trying to raise the asking prices, but on the other hand, the mills were reluctant in paying the rates above their psychological levels.
They (sellers) feel prices to go up due to shortage of fine quality, brokers said.
According to the reports, China's Xinjiang region will reduce its annual cotton production to 4.5 million tonnes by 2022, according to an official five-year plan published on Monday.
Xinjiang, China's top cotton-producing region was expected to produce 5.13 million tonnes of the fibre this year, according to data from China Cotton Association.
Rates of cotton in India were down while prices stabilised in other parts of globe, they said.
The following deals reported: 2000 bales of cotton from Shahdadpur at Rs 8250/8300, 1000 bales from Tando Adam at Rs 8250/8300, 600 bales from Dherki at Rs 9050/9100, 400 bales from Adilpur at Rs 9075, 1000 bales from Saleh Pat at Rs 8750, 1200 bales from Khairpur Mirus at Rs 8600, 400 bales from Lodhran at Rs 9000, 1000 bales from Sadiqabad at Rs 9025/9050, 1000 bales from Rahim Yar Khan at Rs 9050, 200 bales from Chistian at Rs 8500, 400 bales from Layyah at Rs 8500 and 600 bales from Fort Abbas at Rs 8750, they said.