Rising trend persisted on the cotton market on Wednesday on strong demand by mills and spinners in the process of trading, dealers said. The official spot rate resumed it's upward journey, picking up Rs 100 to Rs 8300, they added. Prices of seed cotton in Sindh were at Rs 3800-4150 in the Punjab, rates were at Rs 3700-4300, they said.
In ready session, over 3000 bales of cotton finalised between Rs 8450-Rs 8600, they said. According to market sources, ginners were facing financial losses due to short supply of phutti. So recently a consensus was reached that the ginners would not avoid competing with each other, resulting seed cotton prices would remain under control, they added.
Cotton analyst, Naseem Usman said that despite falling trend in the international market, rates of local cotton are going up owing to less supply of fine quality against the persistent demand
Adds Reuters: ICE cotton futures rose to a three-week high on Tuesday, ahead of a monthly crop supply and demand report due later this week, as investors covered their short positions.
The most active cotton contract on ICE Futures US, the second-month December contract, settled up 0.91 cent, or 1.06 percent, at 86.38 cents per lb.
"The volume has been light. The fact that open interest is going down tells this is not speculative buying but is mainly some short-covering by trade members," said Peter Egli, director of risk management at British merchant Plexus Cotton.
Total futures market volume fell by 3,223 to 17,712 lots. Data showed total open interest fell 697 to 251,867 contracts in the previous session.
Following deals reported: nearly 1600 bales of cotton from Tando Adam done at Rs 8500-8600, 800 bales from Shahdadpur at Rs 8500, 200 bales from Kotri at Rs 8475, 200 bales from Vehari at the same rate and 400 bales from Burewala at Rs 8450, they added.