Seed cotton rates rise on selective buying
Seed cotton prices showed modest improvement on the cotton market on Thursday amid selective buying by mills, dealers said. The official spot rate was unchanged at Rs 5,250, dealers said. In Sindh, seed cotton prices were higher by Rs 100 to Rs 2400 and Rs 2900 and in the Punjab rates picked up by Rs 50 to Rs 2500 and Rs 3050, they said. In the ready business, nearly 20,000 of deals were finalised between Rs 4750 and Rs 5575, they said.
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Since the dollar has started improving versus the rupee, the buyers continued selective in expectations of better return. Cotton analyst, Naseem Usman said that the Cotton Crop Assessment Committee (CCAC) has revised down cotton production estimate from 15 million bales to 11.3 million bales. Reports regarding damages of crop after rains in cotton belt, causing uncertainties among buyers, some of them were laying hands over the fine type to make their products competitive in the world market, other experts said.
Reuters adds: ICE cotton rose on Wednesday as rains and foggy weather have prevented harvesting in portions of the US cotton belt for several days, though the trading range was tight and the price traded entirely within the prior session's high and low. March cotton on ICE Futures US settled up 0.32 cent, or 0.52 percent, at 62.31 cents per lb. It traded within a range of 61.92 and 62.62 cents a lb. Total futures market volume fell by 16,973 to 32,597 lots. Data showed total open interest gained 773 to 192,453 contracts in the previous session.
The following deals reported, 800 bales from Sanghar at Rs 4750-4850, 400 bales from Shahdadpur at Rs 4900, 400 bales from Moro at Rs 5325, 1000 bales from Bhiria City at Rs 5325, 400 bales from Bandhi at Rs 5350, 2000 bales from Mehrabpur at Rs 5350-5400, 400 bales from Ranipur at Rs 5400, 400 bales from Rasoolabad at Rs 5400, 800 bales from Salehpat at Rs 5475, 1000 bales from Ghotki at Rs 5525-5550, 800 bales from Dharki at Rs 5550, 400 bales from Khanpur Mehar at Rs 5550, 200 bales from Chichawatni at Rs 5200, 400 bales from Layyah at Rs 5375, 400 bales from Hasilpur at Rs 5400, 800 bales from Chistian at Rs 5400-5450, 600 bales from Haroonabad at Rs 5400-5500, 600 bales from Bahawalpur at Rs 5425-5500, 400 bales from Muhammadpur Dewan at Rs 5450, 600 bales from Tonsa Sharif at Rs 5450, 400 bales from Fort Abbas at Rs 5450, 800 bales from Yazman Mandi at Rs 5450-5500, 400 bales from Faqirwali at Rs 5500, 400 bales from Uch Sharif at Rs 5500, 400 bales from Dera Ghazi Khan at Rs 5500, 1000 bales from Liaquatpur at Rs 5500-5525, 800 bales from Alipur at Rs 5525-5575, 400 bales from Mianwali at Rs 5550, 1000 bales from Rahim Yar Khan at Rs 5525-5575 and 800 bales from Sadiqabad at Rs 5575, dealers said.