KARACHI: Cotton prices rose by Rs300 on Wednesday on forecasts of global shortage of cotton this season against higher consumption.
Market sources said the US Department of Agriculture (USDA) in its recent report has estimated lesser cotton production this season against higher cotton demand the world over.
Though there was some panic buying from spinners at the outset, ginners’ reluctance to sell their stocks in anticipation of getting higher prices in the coming days stifled activity.
During the last three days cotton prices have moved up by Rs500 per maund (around 38 kilograms) with a gain of Rs300 recorded on Wednesday alone, brokers said.
The fear of heavy downpour continues to panic ginners and spinners alike as it may damage standing cotton crop in many parts of the country. The overall world cotton production scenario as painted by the USDA was not encouraging.
Consequently, prices in most of the world cotton markets soared with the New York cotton reported to have moved up by 7.5 US cents per lb to touch a record high level in six years at 71.25 US cents per lb. The Indian and Chinese markets also remained volatile with prices ending at fresh high level.
According to reports, Indian cotton prices soared by Rs1,200 per 356kg to touch Rs4,500. Similarly, Chinese cotton market is also reported to have touched record level.
Though there was strong demand for cotton from spinners, many bids offered were rejected by ginners who are marking time to get higher prices. At one stage prices touched peak level of Rs6,200 per maund but towards closing stages closed lower at Rs6,100 per maund.
The Karachi Cotton Association also revised its spot rates upward by Rs100 per maund, to Rs5,850.
Trading on ready counter remained moderate to active but prices moved higher between Rs100 to Rs300 per maund. The following deals were reported: 400 bales from Sanghar (at Rs5,950 to Rs6,000 per maund), 600 bales Mirpur Khas at Rs5,950 to Rs5,025, 1,200 bales Tando Adam at Rs5,975 to Rs6,050, 200 bales Hyderabad at Rs6,000, 200 bales Golarchi at Rs6,000, 200 bales Kotri at Rs6,000, 400 bales Burewala at Rs6,100, 400 bales Gojra at Rs6,100, 200 bales Sahiwal at Rs6,100, and 200 bales Vehari at Rs6,100.
Courtesy : Dawn News