Cotton prices rebound on strong demand

Prices maintained upward journey on the cotton market on Friday in the process of moderate trading, dealers said. The official spot rate extended overnight gains, picking up Rs 200 to Rs 9200, they added. Prices of seed cotton in Sindh went up sharply picking up around Rs 400 to Rs 4400-4500 and in the Punjab, rates rose by Rs 200 to Rs 3800 and Rs 4400, they said. In Balochistan, prices of seed cotton also gained Rs 100 to Rs 4200-4300, they said.

In ready session, over 4,000 bales of cotton finalised within the range of Rs 9175-9400, they said.

According to the market sources, non-availability of irrigation water in Lower Sindh, causing sharp rise in the rates. They also said that during hot weather, the growers were busy in sowing and hoping for better result. Reports showing that cotton flowers are blooming properly, while the bolls are not opening fully, signs that the plants have not matured fully and would be not able to give quality lint.

Cotton analyst, Naseem Usman said that another reason is constant firm prices in the world market, which is a solid factor behind the steadier trend in the local market.

In the international market, cotton prices were lower in the process of trading, dealers said.

Following deals reported: 600 bales of cotton from Shahdadpur at Rs 9200-9300, 1200 bales from Tando Adam at Rs 9200-9400, 800 bales from Sanghar at Rs 9200-9350, 600 bales from Sinjoro at Rs 9200-9300, 200 bales from Khadro at Rs 9200, 400 bales from Mian Channu at Rs 9200-9300, 200 bales from Vehari at Rs 9300, 200 bales from Arifwala at Rs 9250 and 200 bales from Bhawana at Rs 9175, they added.