August 24, 2019

Cotton prices up on improved demand by mills.

Prices showed further improvement on the cotton market on Friday in the process of trading activity, dealers said. 

The official spot rate was higher by Rs 100 to Rs 8000, they added. In ready session, over 12000 bales of cotton changed hands between Rs 7850 and Rs 8300, they said. Rates of seed cotton per 40kg in Sindh were sharply higher by Rs 300 to Rs 3300-3600, in Punjab prices were at Rs 3500-4100, they said. In Balochistan, seed cotton prices were up by Rs 100 to Rs 3600-3700, 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 187.


According to the market sources, phutti supply was halted by the absence of Hindu women pickers, who were on leave to celebrate a festival.


This factor helped the rates to go up, cotton analyst, Naseem Usman said. Besides, according to private sector estimate the cotton production target may be at about 12.5 million bales for the current year, he added.


Adds Reuters: ICE cotton futures fell over 1% on Thursday after weak export sales data, adding to worries over demand for the natural fiber, which has already been hurt by a drawn-out trade war between the United States and China.


Cotton contracts for December fell 0.85 cent, or 1.42%, to 59.09 cents per lb at 1 pm EDT (1700 GMT).


Total futures market volume fell by 7,749 to 11,595 lots. Data showed total open interest gained 2,308 to 215,953 contracts in the previous session.


Following deals were reported: 1600 bales from Shahdadpur at Rs 7900-8000, 1400 bales from Tando Adam, 1000 bales from Sanghar, 1400 bales from Nawabshah, 1000 bales from Hyderabad all done at the same rate, 2000 bales from Mirpurkhas at Rs 7850-8000, 200 bales from Shujaabad at Rs 8300, 200 bales from Samandari at Rs 8250, 600 bales from Burewala at Rs 8200, 1600 bales from Chihawatni, 600 bales from Haroonabad, 400 bales from Sadiqabad all finalised at the same rate, 200 bales from Hasilpur at Rs 8100-8200 and 800 bales from Vehari at Rs 8100, they said.