Cotton prices rise on sustained buyingArchive
KARACHI: Sustained buying from spinners pushed cotton prices higher on Wednesday amid rising fear about larger-than-expected short crop.
Ginners are reportedly holding back cotton stocks which had created some artificial shortage of cotton. Brokers said ginners seem to be waiting for next phutti (seed cotton) arrivals report due in the first week of next month.
Short supply in front of strong demand helped sellers to dictate their price, and many needy spinners readily obliged, brokers said. Meanwhile, the Trading Corporation of Pakistan (TCP) received no response against its 8th tender for the disposal of cotton stocks. So far only 10,000 bales could be sold while around 86,000 bales are still lying unsold, brokers said.
Brokers said that TCP’s tender conditions for depositing 10 per cent sales tax at the time of offering bids is a major hindrance which is discouraging buyers to participate in biddings.
Major deals on ready counter were: 1000 bales from Nawabshah done at Rs5300 to Rs5350, 3000 bales Khairpur at Rs5450 to Rs5500, 2000 bales upper Sindh at Rs5500 to Rs5600, 1000 bales Haroonabad at Rs 5550, 800 bales Hasilpur at Rs5550 to Rs5625, 1000 bales Rahimyar Khan at Rs5700, 1200 bales Layyah at Rs5600 to Rs5650, 1000 bales Mianwali at Rs5600, 800 bales Fazilpur at Rs5600, 800 bales Dera Ghazi Khan at Rs5600, 600 bales Rajanpur at Rs5600, 800 bales Fort Abbas at Rs5600.
Meanwhile, the New York cotton market recovered part of its recent losses as all futures contracts ended higher.
Published in Dawn, October 29th, 2015
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