Slow trading activity witness on Saturday at cotton market due to short supply of quality cotton. However, prices tended to move higher and most deals were also finalised on high rates.
Due to strong demand, cotton prices touched a record level of Rs7,300 per maund (around 37 kilograms). Phutti prices also rose to a seasonal high of Rs3,850 per 40kg. Limited stocks of around 900,000 bales held by ginners were insufficient to see the season through because the next crop is not expected before June or July.
The Karachi Cotton Association left its spot rates unchanged.
The following major deals reported to have changed hands on the ready counter were: 400 bales from Shahdadpur at Rs6,500, 2,000 bales from Sadiqabad at Rs6,900, 1,000 bales from Fort Abbas at Rs7,025 (conditional), 1,000 bales from Lodhran at Rs7,050 and 1,000 bales from Alipur at Rs7,050.
According to the latest ginnersâ€™ body report on cotton production sent shock waves as fortnightly arrivals of phutti (seed cotton) declined further which strongly indicated the crop size would not be more than 10.08 million bales.
The widening gap between production and consumption of cotton was a cause of concern for spinners as they will have to meet the demand through huge imports, brokers said.
According to recent US Department of Agriculture (USDA) export figures, leading cotton producing countries, including PakisÂ¬tan, are currently importing cotton from the United States.
The textile industry has so far entered into import contracts of around 2.2m bales, but cotton prices have now moved higher in the world market which was another major cause of concern for the industry.
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