By admin       2018-03-16

Steady trend prevailed on the cotton market on Thursday as needy spinners still trying to lay hands over the quality cotton to replenish their stocks, dealers said. Official spot rate was unchanged at Rs 7600, they added. In Sindh and Punjab seed cotton prices were at Rs 2800-3100, they said. In the ready session, nearly 1100 bales of cotton finalised between Rs 7350-7800, they said. Market sources said that sharply decreasing cotton stocks are creating uncertainties among buyers. In the meantime, limited arrival of quality lots attracted buyers who are paying higher rates to replenish their stocks. Cotton analyst, Naseem Usman said that volume of business shrunk due to higher rates and it looks that trading activity may not expand because of restricted supply of lint cotton. The global cotton market also remained firm because of steady demand from the export market, analysts said. Besides, the official spot rate stayed at a realistic level as somehow the Karachi Cotton Association (KCA) has changed it's strategy toward rates, which may help in keeping rates close to the market prices, they said. Reports showing that in India, cotton exports have been gathering pace after global prices jumped to four-year highs, with traders in the world's top producer of the fibre signing contracts in the last three weeks to ship over 1 million bales, industry officials told Reuters. Increased supply from India could drag on the rally in international prices and would likely compete with shipments to Asia from exporters such as Australia, Brazil and the United States. Bangladesh, Vietnam and Pakistan are aggressively buying from us due to lower prices. The following deals reported: 600 bales of cotton from Khanewal at Rs 7600, 600 bales from Kot Sabzal at Rs 7350 and 1000 bales from Sadiqabad at Rs 7800, they said.

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