Cotton prices reached seasonal high mark

Cotton driven by strong buying interest from spinners mainly because of lower-than-expected cotton crop size, cotton prices gained to mark a seasonal high record on Monday

On the trading side as many ginners were still reluctant to clear their stocks even at rising cotton prices, the trading activity was slow.
Floor brokers said that with very little cotton in the fields, only stocks held by growers are finding their way into ginneries.

Besides, unsold cotton stocks held by ginners were also being offered for sale to spinners, they added.

Millers rushed to replenish their stocks from the outset, but generally failed to meet their wish list because many ginners were not ready to even sell their stocks at rising cotton prices.

The Karachi Cotton Association (KCA) left its spot rates unchanged and trading on ready counter was fairly active.

The following transactions were reported to have changed hands on ready counter: 400 bales, Khairpur at Rs7,050; 400 bales, Haroonabad at Rs7,000; 400 bales, Dahranwala at Rs7,000; 400 bales, Khanewal at Rs7,075; 400 bales, Alipur at Rs7,200; 600 bales, Sadiqabad at Rs7,200; 3,000 bales Rahimyar Khan at Rs7,200 to Rs7,300; 400 bales, Rajanpur at Rs7,250; 600 bales, Mianwali at Rs7,300 to Rs7,350; and 200 bales, Yazman Mandi (conditional) at Rs7,400.

According to reports, cotton prices in India slightly moved lower and this has been attributed to over pricing which came under correction.

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