Cotton prices see slight recovery due to sustained buying

The cotton prices recovered slightly at cotton market on Monday due to sustained buying by exporters and millers as there are no fears of supply shortage going forward, dealers said. The official spot rate was slight higher by Rs 50 to Rs 5,950. According to the market sources, volume of business increased due to fresh buying interest.

As the business activities have gained momentum after long holidays, the demand remained high with 26,800 bales exchanging hands in Sindh and Punjab regions. In ready business, over 30,000 bales of cotton changed hands between Rs 5900 and Rs 6300 , dealers said.

In Sindh, seed cotton prices at Rs 3000-3200 and in Punjab rates of Phutti were at Rs 3000-3150, as per 40 kg.

Dealers said that the prices were still on the higher side and it was expected that the rates would ease further as Punjab had a bumper crop.

Cotton analyst, Naseem Usman said that prices gained momentum after fresh rains in Indian state of Gujarat and surge in global markets.

The following deals were reported to have changed hands as per dealers: 3600 bales of cotton from Shahdadpur at Rs 5900/6000, 1000 bales from Kotri at Rs 5950/6000, 3000 bales from Sanghar at Rs 5950/6050, 1000 bales from Shahpur Chakar at Rs 5975/6000, 1400 bales from Maqsoodo at Rs 5975/6000, 1000 bales from Hyderabad at Rs 6000, 600 bales from Sinjoro at Rs 6000, 1000 bales from Hala at Rs 6000, 4000 bales from Nawabshah at Rs 6000/6050, 1000 bales from Bandhi at Rs 6050, 1000 bales from Daur at Rs 6050, 800 bales from Sarhari at Rs 6050/6075, 800 bales from Kandiyaro at Rs 6050/6100, 3000 bales from Khairpur at Rs 6050/6100, 1200 bales from Hasilpur at Rs 6100/6150, 600 bales from Mianwali at Rs 6150, 200 bales from Chichawatni at Rs 6150, 200 bales from Burewala at Rs 6175, 800 bales from Vehari at Rs 6185/6250, 600 bales from Mian Chano at Rs 6200/6300 and 600 bales from Khanewal at Rs 6250.