Volume of business further rises on cotton market
Volume of business improved further on the cotton market on Monday owing to renewed buying by mills and spinners, dealers said.
The official spot rate maintained overnight level Rs 8800, they added. In ready session, about 17,000 bales of cotton changed hands between Rs5750-9000, they said.
Rates of seed cotton per 40kg in Sindh were at Rs2600-4300, in the Punjab prices were at Rs3500-4400 and in Balochistan, prices were at Rs3500-4300, they said.
In Sindh, Binola prices per maund were at Rs1400-1700, in Punjab and Balochistan rates were at Rs1500-1600, they said and added that polyester fibre was available at Rs179 per kg.
According to the market sources, mills indulged in panic buying of lint cotton due to acute shortage of quality cotton.
Commenting on the rise in purchasing of cotton, cotton analyst, Naseem Usman said that rupee’s recovery versus the dollar giving an impression that country’s economy likely to show better performance in days to come.
The rupee has appreciated by nearly 60-80 paisas in terms of the dollar during the last month for buying and selling at Rs154.60 and Rs154.90 in the open market, he observed.
Currency viewers were expecting that the rupee will show its strength against the dollar in days to come.
Other experts said that the cotton crop size would not be more than 8.5 million bales, country would have to import approximately 6 million bales to meet the demand of local and export consignments, they added. So, the millers entered into the big deals to replenish their stock, they added.
The Indian cotton Shankar gained Rs200 in a single day rally, other global markets showed mixed trend during the trading session, they said.
The following deals reported: 1600 bales of cotton from Tando Adam at Rs5750/8200, 8000 bales from Khairpur at Rs8050/8600, 2000 bales from Rahim Yar Khan at Rs8900 and 3000 bales from Khanpur at Rs8900/9000.