Cotton prices retained its sturdy performance, bucking the dismal global market trend, and finished up higher on Tuesday as exports and domestic demand remained firm.
There is no showing of soft side from the cotton commodity.
Price of the fiber commodity closed Rs1000 down to settle at Rs40000 per candy or 350 kilograms as investors pulled off profits selling due to pressure from high prices of the commodity in the last couple of sessions, which also resulted to a slow trend in the market.
Despite a slight loss tallied on Tuesday session, cotton prices remained upbeat and higher compare to the previous years as exports and domestic demands continuing to pick up amid fall in arrivals in mandis.
Experts from CA Galiakotwala, a leading cotton exporting company, are anticipating prevailing bullish sentiments in the market as everyone is trying to beat the export shipments deadline while prices and demand stayed strong.
Meanwhile, investors are expecting an upward trend of 10% in the next sessions, following the Rs42 500 per candy touched last week, as cotton availability remained ample and no short supply in the market can be seen.
Just three months after entering a new season, cotton prices have jumped off the RS41000 mark, showing that the commodity is heading north this year. Compare to January of the previous year, prices were just playing between Rs33500 to Rs34000 per candy.
Ginners are now anticipating the phutti (seed cottons) arrivals report to be released on Wednesday, which will be crucial in decision-making about entering big deals.