A modest trade activity was witnessed on the cotton market on Wednesday, dealers said. The official spot rate was unchanged at Rs 6350, dealers said. In Sindh, seed cotton prices were unmoved at Rs 2800 and Rs 3350, they said. In Punjab, phutti rates held the overnight levels at Rs 2800 and Rs 3550, as per 40 kg, they added.
Nearly 5,000 bales of cotton changed hands between Rs 6000 and Rs 6600, they said.
According to market sources, the ginners were active but the spinners took little interest in fresh buying owing to quality factor and partly because of higher prices.
Commenting on the export package, cotton analyst, Naseem Usman said that market observed mixed reaction by traders, mills and spinners were happy over the withdrawal of import duty on cotton and other incentives. But on the other hand, the ginners and growers disappointed by withdrawal of subsidy fertilizer, he said.
Other experts observed that ginners who were expecting better profit of margin, now they lost expectations after removal of import duty on cotton. The ginners have approximately 15 lac bales of unsold stock, they said.
Reuters adds: ICE cotton futures crawled higher on Tuesday in muted trading as investors remained cautious ahead of federal data on agricultural demand and supply due later this weekend. The March cotton contract on ICE Futures US settled up 0.2 cent, or 0.27 percent, at 73.19 cents per lb. It traded within a range of 72.82 and 73.7 cents a lb.
The following deals reported: 400 bales from Sanghar sold at Rs 6000, 400 bales from Fort Abbas at Rs 6450, 1000 bales from Haroonabad at Rs 6450/6550, 1000 bales from Muhammadpur Dewan at Rs 6550, 600 bales from Fazilpur at Rs 6550, 600 bales from Faqirwali at Rs 6550, 1200 bales from Kabirwala at Rs 6550/6575 and 400 bales from Vehari at Rs 6600, dealers said.