ISLAMABAD: Prices tended higher marginally on the cotton market on Friday in the process of tight supply position, dealers said. The official spot rate was unchanged at Rs 6,650, dealers said. In Sindh, seed cotton prices were at Rs 3400-3550 and in Punjab rates of Phutti, were at Rs 3100-3450, per 40 kg, they said. In ready business, around 12,000 bales of cotton changed hands between Rs 6725 and Rs 6900, they said.
According to the market sources, some spinners indulged in panic buying due to short supply position. A kind of forward buying also witnessed by mills, they said. Cotton analyst, Naseem Usman said that mills importing cotton from the US and other countries because of cheap prices as compare to the local rates. Seed cotton supply is slow due to shortage of transport throughout the country ahead of Eid-ul-Azha. Furthermore, he said that currently, Phutti arrivals are not as usual due to Hindu festival in Sindh. All factors causing a modest rise in the price, he said.
Cotton futures prices edged higher on Thursday, supported by positive export sales data from the United States government and a drop in certificated stocks. Weekly export sales data showed net upland sales totalled 275,900 running bales of cotton for the week ended August 18, compared with 205,000 running bales (RB) in the prior week.
The following deals were reported: 400 bales from Sakrand at Rs 6725, 200 bales from Tharo Shah at Rs 6750, 600 bales from Nawabshah at Rs 6750/6800, 1000 bales from Mirpurkhas at Rs 6775/6800, 2000 bales from Sanghar at Rs 6775/6800, 600 bales from Kotri at Rs 6775/6800, 2400 bales from Shahdadpur at Rs 6750/6825, 2000 bales from Tando Adam at Rs 6800/6825, 200 bales from Chowdagi at Rs 6800, 400 bales from Maqsoodo at Rs 6800, 1200 bales from Hyderabad at Rs 6800-6850, 200 bales from Tando M Khan at Rs 6800, 200 bales from Samundri at Rs 6900 and 800 bales from Khanewal at Rs 6950, dealers said.
