Cotton prices soar to seasonal highArchive
KARACHI: Relentless buying from spinners and some exporters surged cotton prices on Saturday to a new seasonal high. There is a growing concern about short crop which is causing panic buying in the market.
Floor brokers said phutti (seed cotton) arrivals report released by ginners’ body indicated short crop by over one million bales. This is causing frenzy buying from some spinners who fear shortage of quality lint.
While the domestic market is being dictated by demand and supply rules due to short crop, world cotton markets are mostly faced with surplus supply which is depressing prices.
The KCA raised its spot rates by Rs50 to Rs4,850, whereas New York cotton market moved lower for all future contracts. Major deals finalised on ready counter were: 1000 bales from Mirpurkhas done at Rs4650, 1200 bales Shahdadpur at Rs4700, 1000 bales Tando Adam at Rs4700, 1000 bales Sanghar at Rs4700, 2000 bales Nawabshah at Rs4900, 2000 bales Khairpur at Rs4950 to Rs4975, 400 bales Layyah at Rs5000 to Rs5050, 800 bales Alipur at Rs5000, 400 bales Bhakkar at Rs5000, 600 bales Rajanpur at Rs5000, 400 bales Tonsa Sharif at Rs5000, 800 bales Fazilpur at Rs4950 to Rs5000 and 600 bales Bahawalnagar at Rs4950.
Published in Dawn, October 4th, 2015
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