Cotton market witnessed prices soaring to two month high

Cotton market witnessed panic buying by millers fearing shortage of quality lint in coming weeks as the result pri¬ce soared to two-month high of Rs6,550 per maund on Thursday. 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. 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.

Phutti prices rose to Rs2,800-3,100 per 40kg for Sindh variety and Rs2,950-3,250 for Punjab quality.

Around 50,000 bales were transacted in a single day, but actual physical volume was much higher as many private deals also took place, as per the official figures,

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.

At the Karachi Cotton Association (KCA), spot rates remained steady at the overnight level.

The following major deals reported to have chan¬ged hands on the ready counter were: 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, Khai¬rpur, 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, Baha-walpur, at Rs6,375; 1,000 bales, Khanewal, at Rs6,350; 3,800 bales, Haroonabad, at Rs6,250 to Rs6,275; 1,000 bales, Hasi¬lpur, at Rs6,225 to Rs6,300; and 1,200 bales, Fort Abbas, at Rs6,200 to Rs6,250.

Raw grades of lint changed hands at Rs 5,975-Rs 6,000 per maund, depending on trash level during trading session.

In kerb market, trading took place in the range of Rs 6,000-Rs 6,325 per maund.