KARACHI: Cotton prices soared to a seasonal high on Saturday on sustained demand from spinners. However, the volatility on the world cotton markets and surge in domestic prices kept trading activity restricted.
Floor brokers said that phutti (seed cotton) arrivals slowed down owing to rising prices and many ginners have also temporarily halted their operation fearing huge losses if prices move further higher.
Short supply of phutti coupled with panic buying from needy spinners pushed cotton prices to a seasonal high and was being quoted in the range of Rs6,600 to 6,700 per maund (around 38 kilograms). Phutti prices also surged to Rs3,300 to Rs3,500 per 40kg, showing a rise of around Rs150 to Rs200 in a single day. The cotton prices touched record level at Rs6,700 per maund showing a gain of Rs700.
Cotton analyst Naseem Usman said that tight supply of phutti and cotton was the main driving force behind surge in cotton prices. They anticipated that prices may even touch Rs7,000 per maund if the situation persisted.
The Karachi Cotton Association increased its spot rate by Rs150, to Rs6,250 per maund.
The following deals were reported on the ready counter: 200 bales from Hyderabad (Rs6,450), 200 bales Kotri (Rs6,500), 600 bales Sanghar (Rs6,000 to Rs6,500), 400 bales Mirpurkhas (Rs6,500), 200 bales Shahdadpur (Rs6,500), 400 bales Tando Adam (Rs6,600), 200 bales Kabirwala (Rs6,700) and 200 bales Burewala (Rs6,650).
Courtesy : Dawn News