Cotton prices stable on strong buying by mills

Strong mills' buying helped the rates to sustain present levels on the cotton market on Saturday, dealers said. The official spot rate was unchanged at Rs 7750, they added. In ready session, about 8000 bales of cotton changed hands between Rs 7600 and Rs 8000, they said. Rates of seed cotton per 40kg in Sindh were at Rs 3000-3300, in Punjab prices were at Rs 3300-3700, they said. In Balochistan, seed cotton prices were at Rs 3500-3600, they said.

In Sindh and Punjab, Binola prices per maund were at Rs 1500-1600, they said and adding that polyester fibre per kg rates were at Rs 192. According to the market sources some positive developments propelled mills to make deals, besides, rising concerns about quality was also a factor behind the increase in demand.

Cotton analyst, Naseem Usman said that strong export sales data in the United States and some other countries encouraging developments gave a boost to the ailing cotton business locally.

ICE cotton futures edged up on Friday, hitting a two-week peak, helped by hot weather in major cotton growing regions in the United States and strong export sales data, with the natural fiber battling demand woes. The most-active cotton contract on ICE Futures US, the second-month December contract, rose 0.44 cent, or 0.74 %, at 60.06 cents per lb at 12:53 pm EDT. It earlier rose to 60.18 cents a lb, its highest since August 2.

Total futures market volume fell by 8,312 to 11,679 lots. Data showed total open interest gained 521 to 215,266 contracts in the previous session. Following deals were reported: 1400 bales of cotton from Tando Adam at Rs 7700/7750, 1000 bales from Shahdadpur at Rs 7700/7750, 1000 bales from Sanghar at Rs 7600/7700, 800 bales from Sinjoro at Rs 7675/7700, 200 bales from Dawlatpur at Rs 7700, 800 bales from Shahpur Chakar at Rs 7650/7700, 400 bales from Khipro at Rs 7625/7650, 1200 bales from Burewala at Rs 7950/8000, 400 bales from Haroonabad at Rs 8000, 200 bales from Chichawatni at Rs 7950 and 800 bales from Moongi Bangla at Rs 7950, they said.