Last update: Wed, 10 Feb 2016 05pm

Cotton market: rates firm on strong demand for fine type

Prices managed to hold the present levels on the cotton market on Tuesday as mills, spinners and exporters showed their interest in buying of fine quality, dealers said. The official spot rate was unchanged at Rs 6,450, they added. Prices of seed cotton in Sindh per 40 kg held the last levels at Rs 2300-3100, in Punjab rates were also same at Rs 2700-3300, dealers said.

In the ready session, trading activity depicted visible rise as buyers were trying to purchase fine type, so around 24,000 bales of cotton changed hands between at Rs 6350-6750, they said.

Local mills were busy in laying hands over the best quality, but Indian preferring to purchase low quality for local needs, cotton analyst, Naseem Usman said.

Thanks to the revival of demand by the importing countries and local buyers, as well, other brokers said.

Reuters adds: ICE cotton eased on Monday, consolidating after the previous session's rally as traders squared positions ahead of a monthly US government supply and demand report due on Tuesday. The most-active March cotton contract on ICE Futures US closed down 0.05 cent, or 0.06 percent, at 80.36 cents a lb.

The benchmark contract inched as high as 80.75 cents, its strongest level since October, and traded in a tight range between support near 79.50-80 cents and resistance at 81-82 cents a lb. Trading volumes fell from Friday's levels, when activity and prices spiked following strong US economic data. The Thomson Reuters/Core Commodity CRB index, a benchmark for global commodities markets, advanced.

The following deals reported as 1000 bales of cotton from Khair Pur (BCI) at Rs 6400, 1000 bales from Upper Sindh at Rs 6450/6500, 600 bales from Upper Sindh (BCI) at Rs 6450/6500, 400 bales from Gojra at Rs 6400, 400 bales from Fort Abbas at Rs 6450, 400 bales from Chistian at Rs 6450, 4600 bales from Haroonabad at Rs 6450-6475, 3800 bales from Faqirwali at Rs 6475, 400 bales from Noor Pur at Rs 6500, 1600 bales from Yazman Mandi at Rs 6500, 600 bales from Liaquat Pur at Rs 6500, 400 bales from Dera Ghazi Khan at Rs 6500, 400 bales from Sadiqabad at Rs 6550, 600 bales from Rajan Pur at Rs 6600, 400 bales from Rahim Yar Khan at Rs 6600, 600 bales from Jalal pur at Rs 6600, 400 bales from Layyah at Rs 6650, 2000 bales from Bahawal Pur (BCI) at Rs 6650 and 3800 bales from Mianwali at Rs 6750, they added.

Copyright Reuters, 2013

Copyright Business Recorder, 2013