Cotton prices rise to seasonal highArchive
KARACHI: Relentless buying from spinners pushed cotton prices on Friday to a seasonal high on growing concern over short crop and expected surge in cotton yarn demand after the imposition of 10 per cent regulatory duty on imports from next month.
Floor brokers said that phutti (seed cotton) prices also soared as supply is fairly slow and growers are demanding higher rates. The reports of ginners holding back cotton stocks till phutti arrivals report due next month was also creating panic buying.
The sustained buying from spinners kept pushing lint prices higher and ultimately touched seasonal high level. Brokers said that if current trend of panic buying continues it could cross Rs6,000 per maund within next couple of days.
However, cotton analyst say that rapidly rising cotton prices in the domestic market is improving import parity which presently stands at around Rs5,400 to Rs5,500 per maund.
The New York cotton market came under selling pressure where all the future contracts closed lower. The Karachi Cotton Association (KCA) left its spot rates unchanged.