Forward buying by mills and spinners keep prices stabilise at cotton market

With both mills and spinners busy in the forward buying, prices showed firmness on the cotton market on Monday, dealers said. The official spot rate maintained week-end levels at Rs 4,600, while seed cotton prices in Sindh were at Rs 2300 and Rs 2450 and in Punjab rates were at Rs 2200 and Rs 2350.

In the ready business, around 17,000 bales of cotton changed hands between Rs 4625 and Rs 4700, dealers said.

The following deals reported to have changed hands: 200 bales from Maqsoodo at Rs 4625, 400 bales from Jhole at Rs 4625/4650, 1400 bales from Shahdadpur at Rs 4650, 200 bales from Shahpur Chakar at Rs 4650, 400 bales from Hyderabad at Rs 4650, 1200 bales from Sanghar at Rs 4650, 400 bales from Jhole at Rs 4650, 200 bales from Moro at Rs 4650, 2000 bales from Tando Adam at Rs 4650/4700, 1600 bales from Mirpurkhas at Rs 4650-4700, 1800 bales from Nawabshah at Rs 4650/4700, 200 bales from Vindar at Rs 4700, 200 bales from Gojra at Rs 4625, 200 bales from Mongi Bangla at Rs 4650, 400 bales from Jhang at Rs 4650, 200 bales from Shorkot at Rs 4650, 400 bales from Chichawatni at Rs 4650-4700, 400 bales from Burewala at Rs 4650-4700, 400 bales from Muridwal at Rs 4650/4675, 1200 bales from Vehari at Rs 4700, 1600 bales from Mian Chano at Rs 4700, 200 bales from Alipur at Rs 4700, 400 bales from Fazilpur at Rs 4700, 200 bales from Rajanpur, 400 bales from Jahanian, 400 bales from Kabirwala all done at Rs 4700.

Cotton analyst, Naseem Usman said that mills are feared that prices of fine quality may go up as a result of short supply position. So, the buyers are preferring to buy as much as they can, without wasting of time in hopes of falling in prices.