Cotton prices rise on strong demand
After a short break, prices showed rising trend on the cotton market on Saturday in the process of hectic trading activity, dealers said. The official spot rate was higher by Rs 100 to Rs 9200, they added. In ready session, 22,000 bales of cotton changed hands between Rs 6800-9400, they said. Rates of seed cotton per 40kg in Sindh were higher at Rs 3000-4400 and in the Punjab prices were at Rs 3600-4500, they said. In Balochistan, seed cotton prices were at Rs 4200-4800, they said.
In Sindh, Binola prices per maund were at Rs 1400-1700 and in Punjab rates were at Rs 1550-1650, they said and adding that polyester fibre was at Rs 187. Market sources said that supply of better quality cotton from Punjab improved despite this factor, prices of lint increased modestly. Cotton analyst, Naseem Usman said that some spinning units are presently facing financial crisis owing to payment of 10 percent sales tax on cotton purchase and 7 percent tax on yarn.
Rates of cotton likely to depict slight gains in the coming days, other leading brokers said. Adds Reuters: ICE cotton futures rose more than 1% on Friday, set for a fifth straight weekly gain on hopes for a positive outcome from the US-China trade talks and an improved technical picture for the natural fiber.
The front-month December contract rose 1.4% to 65.52 cents per lb by 11:56 a.m. EDT (1556 GMT). Total futures market volume fell by 3,274 to 17,691 lots. Data showed total open interest gained 890 to 240,091 contracts in the previous session. The following deals reported: 600 bales of cotton from Tando Adam at Rs 6800, 200 bales from Kotri at Rs 6800, 600 bales from Ghotki at Rs 9400, 400 bales from Dherki at Rs 9400, 4600 bales from Khairpur at Rs 9000, 2000 bales from Rahim Yar Khan at Rs 9350/9400, 8200 bales from Sadiqabad at Rs 9350/9400, 200 bales from Mianwali at Rs 9300, 400 bales from Fazilpur at Rs 9300, 600 Yazman Mandi at Rs 9200, 1000 bales from Fort Abbas at Rs 9200, 1400 bales from Haroonabad at Rs 9100/9200 and 200 bales from Bahawal Nagar at Rs 9100, they said.