Rise in demand by mills and spinners further improved trading

As buyers rushed to reload their stock, the trading activity on the cotton market on Tuesday improved further, dealers said. According to the market, the Trading Corporation of Pakistan (TCP) bought approximately 5600 bales of cotton to the mills at Rs 5885.

The official spot rate remained unchanged at Rs 5,500.

In Sindh, low type of seed-cotton prices rose by Rs 100 to Rs 3100 and better quality was up by Rs 50 to Rs 3250, per 40 kg, while in ready session, over 10,000 bales of cotton changed hands between Rs 5100 and Rs 5885, dealers said.

According to cotton analyst, Naseem Usman, activity will show further improvement owing to rise in demand by mills and spinners. While, some experts observed that activity picked up as deals finalized in both old stock and new crop, so it appeared that prices would further increase in the coming days as sowing has been reduced across the world during the current year.

The following deals were reported to have changed hands as per dealers: 400 bales from Nawabshah sold at Rs 5100, 300 bales from Ghotki at Rs 5300, 950 bales from Ghundco at Rs 5400, 5600 bales from TCP at Rs 5885, 217 bales from Faqir Wali at Rs 5400, 200 bales from Mian Chano at the same rate and 1600 bales from Jlalpur at Rs 5500.