Cotton prices soar as normal activity revives



Prices went up sharply on the cotton market on Wednesday as normal trading activity revived on strong demand, dealers said. The official spot rate gained Rs 150 to Rs 6050, they said. In the ready session, nearly 20,000 bales of cotton changed hand between Rs 5950-6300, they said. In Sindh, seed cotton prices also picked up by Rs 100 to Rs 2600-2850 and in Punjab rates followed the same trend rising Rs 50 to Rs 2600-2800 as per 40 kg, they said. According to the market sources, cotton prices gained momentum following the negative reports regarding damages of crop in cotton producing areas.
After Texas, Florida could also see some bad weather due to Irma, this factor has caused improved buying from mills and spinners, they said. Exporters were also seen in making fresh deals of cotton, influencing an idea of further rise in prices in the coming days, other analysts observed. Cotton analyst, Naseem Usman said that due to emergence of weather related negative reports, rates of cotton may go up steeply in days to come. Besides, reports appeared that the Punjab Agriculture Department (PAD) has started paying a subsidy of Rs 5,000 per acre to Canola growers in a bid to increase oilseed production in the province.
Adds Reuters: ICE cotton futures briefly traded limit-up on Tuesday and hit near four-month highs on concerns of potential damage to the natural fibre crop in the United States following the strengthening of Hurricane Irma. Cotton contracts for December rose 2.85 cent, or 3.96 percent, at 74.73 cents per lb at 1633 GMT. The contract touched a high of 74.88 cents a lb, the strongest since May 17.
The following deals reported: 1600 bales from Kotri at Rs 5950-6100, 1400 bales from Mirpurkhas at Rs 5950/6100, 1400 bales from Sanghar, 1600 bales from Shahdadpur, 800 bales from Hyderabad, 800 bales from Shahpur Chakar all were sold at Rs 6000/6100, 2000 bales from Tando Adam at Rs 6025/6100, 200 bales from New Saeedabad at Rs 6100 400 bales from Nawabshah at Rs 6100, 600 bales from Moro at Rs 6100, 200 bales from Kandiyaro at Rs 6100 800 bales from Bahawalpur at Rs 6200/6300 600 bales from Haroonabad, 1800 bales from Vehari all finalised at the same prices, 600 bales from Mian Chano at Rs 6250, 1800 bales from Kabirwala at Rs 6300, 2000 bales from Khanewal, 400 bales from Layyah and 200 bales from Mailsi all done at the same rates, dealers said.

For More News 

Comments