Cotton price hits two-month highArchive
KARACHI: Cotton price soared to two-month high of Rs6,550 per maund on Thursday on panic buying by millers fearing shortage of quality lint in coming weeks.
However, market talks suggest of imminent rupee devaluation as another factor behind the buying rush.
Phutti (seed-cotton) arrivals remained robust meeting demand for quality cotton from spinners.
According to official figures, around 50,000 bales were transacted in a single day, but actual physical volume was much higher as many private deals also took place.
Phutti prices rose to Rs2,800-3,100 per 40kg for Sindh variety and Rs2,950-3,250 for Punjab quality.
The intense demand for cotton from spinners could well be judged for the fact that they purchased around 1.1 to 1.2 million bales more over the same period last year.
Normally, higher phutti arrivals continue up to mid-November, but current buying pattern suggests that the textile industry is not ready to take risks or compromise over lint quality.
The world leading cotton markets gave mixed trend with New York and India closed easy while China’s stayed firm.
The Karachi Cotton Association (KCA) kept its spot rates steady at the overnight level.
The following major deals were reported to have changed hands on the ready counter: 1,000 bales, Daharki, at Rs6,500 to Rs6,550; 1,000 bales, Ghotki, at Rs6,500; 2,000 bales, Saleh Pat, at Rs6,300 to Rs6,400; 1,600 bales, Rohri, at Rs6,300 to Rs6,400; 8,000 bales, Khairpur, at Rs6,350 to Rs6,400; 1,200 bales, Rajanpur, at Rs6,450 to Rs6,500; 1,600 bales, Liaquat Pur, at Rs6,450 to Rs6,475; 4,200 bales, Rahimyar Khan, at Rs6,450 to Rs6,475; 1,000 bales, Muzaffargarh, at Rs6,450; 1,000 bales, Alipur, at Rs6,400; 1,200 bales, Mianwali, at Rs6,300 to Rs6,400; 1,000 bales, Bahawalpur, at Rs6,375; 1,000 bales, Khanewal, at Rs6,350; 3,800 bales, Haroonabad, at Rs6,250 to Rs6,275; 1,000 bales, Hasilpur, at Rs6,225 to Rs6,300; and 1,200 bales, Fort Abbas, at Rs6,200 to Rs6,250.
Published in Dawn, October 27th, 2017