Rising trend gained momentum on the cotton market on Tuesday in the process of strong mills' buying, dealers said. The official spot rate maintained overnight rising trend, picking up more Rs 50 to Rs 6100, they said. In the ready session, around 25,000 bales of cotton changed hands between Rs 6100-6300, 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. According to the market sources, mills and spinners' interest in fresh buying of quality lint helped the rates to move up sharply. Cotton analyst, Naseem Usman said that steady arrivals of seed cotton providing an opportunity to mills to replenish their stock. The market is basing on demand and supply position, so that it looks that the rates may gain further ground in the coming days, other brokers said.
ICE cotton futures closed a touch higher in low volume trade on Monday as investors remained on the sidelines ahead of a monthly crop supply and demand report from the US government due later this week. Cotton contracts for December settled up 0.11 cent, or 0.2 percent, at 68.95 cents per lb. It traded within a range of 68.05 and 69.07 cents a lb. The September US Department of Agriculture's (USDA) 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 6225/6250, 1200 bales from Rohri at Rs 6200/6225, 1200 bales from Khairpur at Rs 6200, 800 bales from Nawabshah at Rs 6100/6150, 1800 bales from Rajanpur at Rs 6300, 800 bales from Muhammadpur Dewan at Rs 6300, 1800 bales from Mian Channu at Rs 6225/6300, 2600 bales from Fazilpur at Rs 6150/6200, 1800 bales from Khanewal at Rs 6200/6250, 600 bales from Alipur at Rs 6250, 1200 bales from Chichawatni at Rs 6200/6250, 600 bales from Vehari at Rs 6250, 400 bales from Chistian at Rs 6250, 800 bales from Layyah at Rs 6200/6250, 1600 bales from Bahawalpur at Rs 6200/6250, 800 bales from Burewala at Rs 6200, 400 bales from Samundri at Rs 6200, 1800 bales from Mianwali at Rs 6150/6200, 800 bales from Hasilpur at Rs 6175/6200, 1200 bales from Haroonabad at Rs 6150/6175, 1000 bales from Bahawal Nagar at Rs 6150/6175 and 800 bales from Dera Ghazi Khan at Rs 6250, they said.