Spot rate higher on modest trade activity
Spot rate was modestly higher on the cotton market on Friday in the process of tight supply by ginners, dealers said. The official spot rate picked up by Rs 50 to Rs 6,550, they said. In the ready business, nearly 2,000 bales of cotton changed hands between Rs 6600-6650, dealers said. Prices of seed cotton per 40 kg in Sindh were higher at Rs 3150-3200 and in the Punjab rates down at Rs 3000-3050, they said.
Commenting on the slow trade, cotton analyst Naseem Usman said that ginners started raising asking prices in expectations of further rise in the rates. It is most likely that prices may go up in the coming days, other brokers said. Prices are also firm in India and it is giving an impression that mills are likely to cover their immediate needs because prices of fine type would go up, other expert said. According to the Reuters, ICE cotton futures extended losses on Thursday after the US Department of Agriculture reduced its US export estimate for the current 2012/13 crop year and revised higher its forecast of record global stocks. The benchmark December cotton contract on ICE Futures US was down 1.04 cents, or 1.2 percent, at 85.75 cents per lb at 12:24 pm EDT (1624 GMT).
The following deals reported as 200 bales of cotton from Oderolal at Rs 6650, 800 bales from Sanghar at the same rate, 200 bales from Khanewal at Rs 6600, same figure from Burewala at Rs 6600, same figure from Chichawatni at the same rate and same figure from Vehari at the same rate, they added.