Trading activity improves with the rise in phutti supply and drop in rates

The Pakistan cotton market on Monday after an improvement in phutti supply, trading activity improved as exporters also took part due to slip in rates. Dealers said that the official spot rate sustained overnight level at Rs 4,550. While, cotton prices in Sindh were lower by Rs 50 to Rs 2300 and Rs 2400 and in Punjab rates at Rs 2200 and Rs 2400.

In the ready business, over 16,000 bales of cotton changed hands between Rs 4600 and Rs 4700, dealers said.

According to cotton analyst, Naseem Usman, spinners and mills were trying to lay hands over as much as they can. It looks that prices may depict softness in the short-run.

The following deals were reported to have changed hands: 3000 bales of cotton from Sanghar sold at Rs 4600-4685, 2000 bales from Mirpurkhas at Rs 4625-4650, 1400 bales from Hyderabad at Rs 4650-4675, 2600 bales from Shahdadpur at Rs 4625-4690, 2000 bales from Tando Adam at Rs 4650-4675, 400 bales from Maroot at Rs 4600, 600 bales from Chichawatni at Rs 4600-4650, 200 bales from Mian Chano at Rs 4625, 600 bales from Hasilpur at Rs 4625-4650, 1600 bales from Burewala at Rs 4650, 400 bales from Mongi Bangla, 200 bales from Gojra, 400 bales from Vehari, 200 bales from Sahiwal all finalised at the same level, same figure from Jahanian at Rs 4675 and 400 bales from Khanewal at Rs 4700.

On global front, traders estimates that China’s production of top quality cotton, known as extra-long staple (ELS) cotton likely to be three times last year’s crop in 2015/16, pressuring prices and demand from global exporters like the United States.