Rates heading towards season's high on the cotton market on Monday on tight supply of quality lint, dealers said. Just in a single day rally, the official spot rate gained Rs 100 to Rs 5,650 dealers said. In the Punjab, seed-cotton prices were at Rs 3000 and Rs 3200, they said. In the ready business, around 11000 bales of cotton changed hands between Rs 5100 and Rs 5950, they said. Some brokers said that demand is surging with the passage of time as country is facing shortage of nearly 5 million
Cotton futures on Monday rose to their highest level in over two months and registered their biggest one-day gain in more than eight months on short covering amid reports of severe weather in South Texas. There was muted reaction to China's announcement last week that it will hold sales to reduce state reserves, which may have inspired investors to follow Asian traders in covering their short positions, said Peter Egli, director of risk management at British merchant Plexus Cotton.
The July
The cautious trading attitude was maintained by buyers on the market, even though cotton arrival was larger and ginners had in ginneries some 0.8 million bales but sellers were not flexible to ease the high cost of doing business. According to arrivals factories received 11.349 million bales. Again on the last session of the week prices moved up .The spot rate also raised by Rs50 to Rs 3650 and the lint prices shot up to Rs 3800.
The increased cotton production is God's mercy as discouraged
