Active buying by mills helped rates to move up modestly on the cotton market on Wednesday in the process of trading, dealers said. The official spot rate was unchanged at Rs 6,600, they said. In ready session, over 20,000 bales of cotton changed hands between Rs 6250-7000, they said.
In Sindh, seed cotton prices were same at Rs 2700-3200, in the Punjab, rates also held the overnight levels at Rs 2700-3300, as per 40 kg, they said. Market sources said that some leading buyers still in search of direction in the absence of guiding factors.
Cotton analyst, Naseem Usman said that prices were firm due to some factors, sharing the same views other analysts said that delay in cotton import from neighbouring country is also creating some confusions among participants. Short crop of lint cotton in country, particularly in the Punjab is a kind of jitter among the cotton traders, so as a whole, this factor will affect total cotton production, he added.
As a result of negative developments in Indian cotton belt, prices went up sharply and it looks that rising trend may maintain in the near future, other experts said. Adds Reuters: ICE cotton futures ended nearly unchanged on Tuesday after touching their lowest in almost a week on lack of speculative buying.
Cotton contracts for March settled down 0.07 cent, or 0.10 percent, at 72.51 cents per lb. They traded within a range of 72.14 - their lowest since November 29 - and 73.15 cents a lb. Total futures market volume rose by 4,799 to 27,625 lots. Data showed total open interest fell 53 to 248,728 contracts in the previous session.
The following deals reported: 1000 bales of cotton from Mirpur Mathelo at Rs 7000, 1600 bales from Khanpur Meher, 1200 bales from Ghotki done at the same rate, 3400 bales from Dherki at Rs 6900-7000, 2000 bales from Khairpur at Rs 6400-6550, 1200 bales from Shahdadpur at Rs 6250, 800 bales from Sadiqabad at Rs 7000, 1200 bales from Rahim Yar Khan at the same rate, 1400 bales from Shujabad at Rs 6800-6900, 800 bales from Mian Channu at Rs 6850, 600 bales from Shadan Lund at Rs 6800, 200 bales from Ghazi Ghat at Rs 6780, 6000 bales from Ahmedpur East at Rs 6500, 1400 bales from Mianwali at Rs 6400, 200 bales from Layyah, 400 bales from Haroonabad and 200 bales from Chistian all done at the same rate, 1400 bales from Chistian at Rs 6300-8350, 800 bales from Bahawal Nagar and 1000 bales from Haroonbad all finalised at the same rate, they said.