Dwindling fine stock pushes prices upward on cotton market

The dwindling stock of quality lint is pushing the prices further upward at the cotton market on Friday in the process of modest trading, dealers said. According to market sources, in the international market, prices are drifting lower on slow demand but rates in local market gradually gaining momentum on the short supply position.

The official spot rate extended overnight gains, picking up further Rs 25 to Rs 5,650 dealers said.

In the Punjab, prices showed no change at Rs 3100 and Rs 3400 while in the ready business, around 3000 bales of cotton changed hands between Rs 5200-6000, dealers said.

Cotton analyst, Naseem Usman said that the local buyers were keen in fresh deals but failed to oblige their counterparts.

The ginners preferred to keep on the sidelines, because they are definite to get better rates in the near future in the absence of huge stock of lint cotton.

The following deals were reported to have changed hand as per dealers: 400 bales of cotton exporters to mills at Rs 5200, 1200 bales from Nawabshah at Rs 5735-5910, 400 bales from Liaquatpur at Rs 5400, 200 bales from Mian Chuno at Rs 5550, 200 bales from Ahmedpur at Rs 5600 and 400 bales from Rajanpur at Rs 6000.

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