COTTON MARKET: PRICES RISE ON TIGHT SUPPLIES AT FIRST SESSION OF NEW YEAR
Prices managed to recover on the cotton market on Friday (first session of 2016) in the process of tight supplies, dealers said. The official spot rate was higher by Rs 50 to Rs 5,250, dealers said. In Sindh, seed cotton prices were unchanged at Rs 2200 and Rs 3000 and in the Punjab, rates held the overnight levels at Rs 2200 and Rs 3100, they said.
In the ready business, over 5,000 bales of cotton finalised between Rs 4200 and Rs 5700, they said. Some brokers said that supply position is tight ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly report within a couple of day. Cotton analyst, Naseem Usman commenting on the size of current production said that arrival may be lower-than-expected, this is basic factor behind the current increase in rates.
Reuters adds: Benchmark cotton prices on ICE Futures US settled down 0.69 cent, or 1 percent, at 63.28 cents per lb on Thursday, but the second-month contract ended the year up 5 percent. The slight gain came as benchmark prices recovered from a 6-1/2-year low struck early in the year on weak demand, competition from synthetic fibres, and huge supplies. World inventories have swelled due to a government stockpiling program that lifted prices and kept farmers planting even as demand flagged.
The following deals reported: 800 bales of cotton from Shahdadpur (Low quality) at Rs 4200, 224 bales from Nousher Feroze at Rs 5270, 400 bales from Chistian at Rs 5285, 400 bales from Vehari at Rs 5500, 600 bales from Mianwali at Rs 5500-5625, 400 bales from Alipur at Rs 5600, 600 bales from Yazman Mandi at Rs 5700 and 1200 bales from Sadiqabad at Rs 5700, dealers said.