Official spot rate hits season’s high on cotton market

Hectic trading activity was witnessed at the cotton market with prices in ready business and official spot rate touching season’s high on Monday, dealers said. In ready business, more or less 10,000 bales of cotton changed hands between Rs 6500 and Rs 7000.

The official spot rate picked up further by Rs 150 to Rs 6400. While in Sindh seed cotton prices posted fresh gain of Rs 100-Rs150 to Rs 3400 and Rs 3500 per 40 kg, respectively, In Punjab, rates of phutti also went up at Rs 3400 and Rs 3600, dealers said.

According to cotton analyst, Naseem Usman, shortage of cotton crop in the producing countries, causes surge in prices. Rising demand from four fronts hit the rate seasonal high at Rs 7000.

The world’s largest cotton trader LD, who was on the sidelines last days, now indulged in forward buying, this factor is also pushing the rates up, other observers said.

The following deals were reported to have changed hands as per dealers: 200 bales of cotton from Kazi Ahmed done at Rs 6500, 3000 bales from Sanghar at Rs 6600/6700, 1600 bales from Shahdadpur at Rs 6650/6700, 2000 bales from Mirpurkhas at Rs 6650/6700, 2000 bales from Tando Adam at Rs 6650/6750, 400 bales from Burewala at Rs 6900/7000, 600 bales from Khanewal at Rs 7000 and 200 bales from Alipur at Rs 7000.