Cotton market: spot rate extends overnight gains on strong buying

Official spot rate extended overnight gains on the cotton market on Saturday as mills and spinners continued buying following the fears of short supply of crop in the coming days, dealers said. The official spot rate was higher by up by Rs 50 to Rs 5250, dealers said. In Sindh, seed cotton was unchanged at Rs 2600 and Rs 2900 and in Punjab prices were at Rs 2500 and Rs 3100, they said.
In the ready business, around 20,000 bales of cotton changed hands between Rs 4800 and Rs 5500, they said. Some brokers said that persistent buying by mills and spinners may help rates to maintain a firm posture. The spinners and mills were busy in forward buying to themselves from future losses, they said. Cotton analyst, Naseem Usman said that the All Pakistan Textile Mills Association (APTMA) held a video conference to review present situation and urged cotton buyers not to buy cotton at the higher rates. The Aptma also decided to go on strike if the government not announces Textile Package at the earliest, other analysts said.
The following deals reported: 400 bales from Mirpurkhas at Rs 4800-4900, 500 bales from Tando Adam at the same rate, 600 bales from Sanghar at Rs 4850-4900, 800 bales from Shahdadpur at Rs 4900-5000, 1600 bales from Khairpur at Rs 5300-5500, same figure from Rohri at Rs 5375-5400, 1000 bales from Sahehpat at Rs 5400-5500, 400 bales from Kasso Wali at Rs 5250, 800 bales from Chichawatni at Rs 5250-5300, 400 bales from Vehari at Rs 5300, same number from Mian Chano, 600 bales from Burewala, 400 bales from Bakhar same figure from Mamu Kanjan, same figure from Samundri at the same rate, 800 bales from Layyah at Rs 5400-5500, 600 bales from Sadiqabad at Rs 5500, 800 bales from Rahim Yar Khan, 600 bales from Tonsa Sharif, same figure from Dera Ghazi Khan, 800 bales from Faqirwali, 1000 bales from Haroonabad, 600 bales from Fazilpur, 800 bales from Rajanpur and 1000 bales from Mianwali all done at the same rate, dealers said.