Uncertainty over size of cotton production kept prices higher

The uncertainty about the size of cotton production with strong demand with some needy mills and exporters indulged in forward purchase kept prices higher at Pakistan cotton market on Wednesday.

In the ready business, over 20,000 bales of cotton changed hands between Rs 4600 and Rs 5450, while in Sindh, seed cotton prices were higher by Rs 100 to Rs 2600 and Rs 2800 and in Punjab prices gained Rs 100-300 to Rs 2600 and Rs 3100, dealers said. But the official spot rate remained unchanged at Rs 5200.

Cotton analyst, Naseem Usman said that partial strike was observed by the All Pakistan Textile Mills Association (APTMA) against delay in announcement of relief package

According to dealers following deals reported to have changed hands: 1000 bales from Mirpurkhas at Rs 4600-4650, 800 bales from Tando Adam at Rs 4800, 1000 bales from Shahdadpur at Rs 4800, 1200 bales from Nawabshah at Rs 5200-5300, 5000 bales from Khairpur at Rs 5300-5350, 3000 bales from Upper Sindh at Rs 5300-5400, 600 bales from Burewala at Rs 5200-5225, 400 bales from Vehari at Rs 5225, 400 bales from Fort Abbas at Rs 5250-5350, 600 bales from Khanewal at Rs 5275-5375, 400 bales from Chistian at Rs 5300, 800 bales from Dera Ghazi Khan at Rs 5300, 400 bales from Ahmedpur at Rs 5350, 400 bales from Faqirwali at Rs 5350, 400 bales from Bakhar at Rs 5300-5350, 800 bales from Layyah at Rs 5350-5400, 600 bales from Alipur at Rs 5350-5400, 800 bales from Haroonabad at Rs 5300-5370, 600 bales from Hasilpur at Rs 5350-5450, 400 bales from Jampur at Rs 5400, 800 bales from Fazilpur at Rs 5400 and 600 bales from Shadan Lund at Rs 5400.

On the global front after a US government report lowered expectations for output in top producer India and continued rains in US growing regions contributed to supply concerns. ICE cotton futures rallied to their highest levels in more than a month on Tuesday.