Cotton market saw revival in buying interest

With some spinners moving to replenish their stocks, cotton market on Tuesday saw revival in buying interest. Some spinners also made big-lot deals with steady flow of buying orders keeping prices firm at overnight level.

Brokers said that the rising trend in world cotton prices could have induced some spinners to build up stocks at current rates.

The Karachi Cotton Association spot rates were firm at overnight level. Major deals on the ready counter that changed hands were: 500 bales from Chichawatni at Rs6,600 per maund (around 37 kilograms), 400 bales from Noorpur Nauranga at Rs6,940, and 1,393 bales from Bahawalpur at Rs7,000.

While, at the Karachi Cotton Exchange on Tuesday trading activity remain slow. The spot rates remained firm and unchanged at Rs6,700/maund (37.324kg) and Rs7,180/40kg. Ex-Karachi rates also stood firm at Rs6,835/maund and Rs7,325/40kg after an addition of Rs135 and Rs145 as upcountry expenses, respectively.

According to estimates, world’s cotton production is expected to rise by 10 to 15 percent next season. Pakistan is also estimated to produce around 10pc more cotton.

Other leading cotton markets, including China and India closed with fresh gains.

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