Cotton market: spot rate higher by Rs 100 amid tight supplies

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From International Desk - Special Reports

Official spot rate was sharply higher by Rs 100 on the cotton market amid tight supply position and increase in yarn demand, dealers said here on Monday.

The official spot rate was up by Rs 100 to Rs 5500, they added.

Prices of seedcotton in Sindh moved up by Rs 100 to Rs 1800-2300, and in the Punjab rates followed same trend at Rs 2100-2700, they said.

About, 5000 bales of cotton changed hands between Rs 5100-6000, they said.

Market sources said that tight supplies helped the rates to look ahead and it appeared that prices may keep firmness due to continued increase in demand for yarn by China and Bangladesh, they said.

Furthermore, after India's news, the prices of cotton may depict upward trend in the coming days, and it is also likely that country may achieve exports target this year, Naseem Usman said.According to the report, India will not allow additional cotton exports as of now though it could permit shipments already registered with the government after revalidating, trade and textile minister Anand Sharma said.

"Until further orders, there will not be any fresh registrations," Sharma told reporters after a panel of ministers met to review cotton exports from India, the world's second-largest producer, which banned shipments of the fibre in March.

The following deals were reported: 400 bales of cotton from Rohri at Rs 5700, 550 bales of cotton from Mir Pur Mathelo at Rs 5850, 400 bales from Ghotki at the same rate, same figure from Burewala at Rs 5100, 200 bales from Hasil Pur at Rs 5500, same number from Madrasa at Rs 5600, same figure from Faqir Wali at the same rate, 1400 bales from Sadiqabad at Rs 5700-7000 and 1000 bales from Rahim Yar Khan at Rs 5800-6000.

Courtesy: Business Recorder

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