RECORDER REPORT

KARACHI: Cotton prices hit season’s high on the local market on Saturday in the process of selective business activity, dealers said.

The official spot rate managed to hold overnight level at Rs 8100, they added. Prices of seed cotton in Sindh were almost unchanged at Rs 3800-4100 in the Punjab, rates were at Rs 3500-4200, they said.

In ready session, 400 bales of cotton finalised at Rs 8250, besides, a deal of 200 bales of cotton reported, hitting season’s high level at Rs 8350, they said.

Market sources said that mills and spinners trying to lay hands over the fine quality to meet their demand despite higher rates. In the meantime, the ginners adopted cautious attitude towards deals of new crop, they said.

Cotton analyst, Naseem Usman said that the cotton prices likely to maintain present trend in the near future. Other brokers said that if arrival of seed cotton improves, it may help in stabilising the rates of cotton.

Adds Reuters: ICE cotton futures climbed 3 percent on Friday, helped by concerns that dry weather in major producing region Texas could hurt output, as the natural fibre marked its first weekly gain in four weeks.

The most active cotton contract on ICE Futures US, the third-month December contract, settled up 2.49 cents, or 3.04 percent, at 84.45 cents per lb. It traded within a range of 81.75 and 84.73 cents a lb.

The December contract saw its biggest one-day percentage gain since May 29. It ended the week up 0.6 percent after declining for three weeks in a row.

Prices of cotton in the Indian markets were higher, dealers said.

Following deal of 400 bales of cotton from Shahdadpur reported at Rs 8250, they added.