Cotton price rises by Rs50
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KARACHI: Revival of buying interest pushed prices higher on the cotton market on Tuesday as many spinners rushed to replenish their stocks to meet their near future demand.
However, the issue of Gas Infrastructure Development Cess (GIDC) is keeping the textile industry apprehensive after the Supreme Court has vacated the stay, floor brokers said.
Depleting cotton stocks, particularly of quality lint, with ginners continue to restrict trading activity. Recent rains in Punjab have brightened the prospects of bumper crop for next season, brokers added.
According to market sources new crop’s (2015-16) first deal from Muridwala was finalised at Rs5,600 per maund for July 10, 2015 delivery. This indicates that prices for new crop cotton would be higher.
Sources said that due to expected delay in new crop arrival many spinners are trying to book stocks in advance to ensure timely delivery of cotton. This is a major factor for pushing up prices of new crop, they added.
The Karachi Cotton Association (KCA) raised its spot rates by Rs50, to Rs5,500 per maund.
The following deals were reported to have changed hands on ready counter: 1000 bales from Ghotki (conditional) done at Rs5600 to Rs5700, 200 bales Lodhran at Rs4900, 600 bales Shiwal at Rs5100 to Rs5200, 100 bales Karror Pakka at Rs5375, 200 bales Vehari at Rs5400, 200 bales Shair Sultan at Rs5525 and 1200 bales Bahawalpur at Rs5700 to Rs5800 (conditional).
The New York cotton market after moving higher for three consecutive sessions came under profit-selling as many brokers having ‘long’ position unloaded some stocks.
Published in Dawn, May 20th, 2015
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