An unprecedented rise in cotton prices hampered by technical correction on the local market on Saturday in process of modest trading, dealers said. The official spot rate stayed firm at Rs 9400, they added. Prices of seed cotton in Sindh were at Rs 4200-4500 in the Punjab, rates were at Rs 3800-4500, they said.
In ready session, around 3000 bales of cotton finalised within the range of at Rs 9400-9600, they said. Market sources said that rates of cotton touched the high levels during the last several sessions, so correction was overdue to arrest the unprecedented rise lint cotton. Cotton analyst, Naseem Usman said that the fine cotton was not available easily mainly because of short supply and dollar's record breaking levels versus the rupee.
In the meantime, some needy mills and spinners showed little interest to replenish their stock, he observed. During the last sessions, a mad rush was observed for cotton buying because of high rates, other brokers said. It looks that leading spinners may refrain from forward buying ahead of Election 2018, they said.
Furthermore, in 2010-11, cotton prices surged to all-time high level at Rs 14000 per maund, influenced by global market surge, they added. Cotton prices showed divergent trend in the global markets, they said. Following deals reported: 1400 bales from Tandoadam done at Rs 9450-9600, 600 bales from Shahdadpur at Rs 9500-9600, 400 bales from Burewala done at Rs 9550-9600, 400 bales form Vehari at Rs 9550-9600 and 100 bales from Chichawatni finalised at Rs 9600, they added.
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