As mills and spinners took interest in fresh buying to cover their immediate needs some swift trading was witnessed on the cotton market on Wednesday. In ready session, approximately 15000 bales of cotton changed hands between Rs 5350-5550, however, prices of seed cotton in Sindh and Punjab dropped modestly to Rs 2650-2700. The official spot rate increased further by Rs.75 to Rs5375.

Pakistan textile sector is the major source of foreign exchange earnings putting all efforts to take benefit of GSP plus status, despite having a lot of problems with them. Mayhem over delay in monsoon rains in cotton belt also a big problem for the growers as they were not getting better returns due to decline in prices, as per cotton analyst, Naseem Usman.

The following cotton deals exchanged hands: 2000 bales of cotton from Sanghar and Mir Pur Khas were sold at Rs 5350-5400 and at Rs 5375-5400 respectively, 1800 bales from Shahdadpur, 1600 bales from Tando Adam, 1000 bales from Kotri, same figure from Hyderabad all finalised at the same rate, 200 bales from Maqsoodo at Rs 5400, 400 bales from Sahiwal, 600 bales from Khanewal at the same rate, 400 bales from Hasilpur, 600 bales from Haroonabad, 200 bales from Gojra, 600 bales from Arifwala, 200 bales from Kasso Wali at the same rate, 200 bales from Chistian at Rs 5525, 400 bales from Chichawatni at Rs 5550 and 1600 bales from Burewala at Rs 5500-5550.

On the global front, the NY cotton futures were lower on Tuesday. A sharp drop in cotton prices overseas and weak monsoon to see increase in India’s imports which will help support cotton futures.