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Cotton rates to touch new season’s high

Rates to touch new season’s high
Rates to touch new season’s high

Prices may touch new season’s high at Rs 8000 on the cotton market owing to shortage of quality cotton, dealers said in last week of December. The official spot rate was unchanged at Rs 7000, they said. In ready session, around 14,000 bales of cotton changed hands between Rs 6300-7550, they said. In Sindh and Punjab, seed cotton prices were at Rs 2800-3500, as per 40 kg, they said.

According to market sources a deal of 400 bales from Dharki done at Rs 7,700, indicating that prices improve further in the coming days. The ginners have started raising asking prices due to short arrivals of lint cotton, they said.

Besides, All Pakistan Textile Mills Association (APTMA), Karachi Cotton Association (KCA) and the Pakistan Cotton Ginners Association (PCGA) held a discussion on the present issues faced by the cotton related circle. They suggested for availing better quality of cotton seed to improve cotton production. They also proposed to cut the cultivation area of sugarcane. Cotton analyst, Naseem Usman said that prices were picking up in the globe due to shortage of fine quality, so it looks rates to gain momentum in days to come.

Adds Reuters: ICE cotton futures jumped 2 percent on Wednesday, boosted by short-covering as the March contract touched an all-time high.

Cotton contracts for March expiry settled up 1.52 cents, or 1.96 percent, at 78.95 cents per lb. They traded within a range of 77.25 and 78.99 cents a lb, a peak for the contract. Total futures market volume rose by 14,174 to 26,127 lots. Data showed total open interest gained 717 to 274,603 contracts in the previous session.

The following deals reported: 1000 bales of cotton from Dherki at Rs 7500, 1600 bales from Ghotki at Rs 7500/7550, 200 bales from Alipur at Rs 7500, 1600 bales from D. G. Khan at Rs 7500, 1210 bales from Jahania at Rs 7300, 400 bales from Hasilpur at Rs 7100, 2000 bales from Faqirwali at Rs 6500/6700, 4800 bales from Haroonabad at Rs 6300/6700, 1400 bales from Bahawal Nagar at Rs 6300 and 200 bales from Chistian at Rs 6300, they said.