Renewed buying interest from spinners pushes cotton prices higher

Renewed buying interest from spinners and some exporter at cotton market on Friday pushes cotton prices higher. Cotton prices rose by Rs200 to Rs300 per maund (around 37 kilograms).

There were higher trade deals which helped cotton prices recoup their recent losses and finished around Rs200 to Rs300 higher on the ready counter, brokers said.

The Karachi Cotton Association raised its spot rate by Rs100, to Rs6,300 per maund.

Broker said that confusion over the import of Indian cotton continues and there is no proper and clear cut government policy over the issue. This is also keeping the textile industry in a perplexed mode.

The industry is also striving to resolve the issue of imported India cotton lying at Karachi port. It has asked the government that first it should be allowed to be exported to Dubai and then imported back to the Pakistan. The industry believes this way it would be a win-win situation for all the stakeholders.

Major deals that changed hands on the ready counter were: 1,200 bales from Sanghar (done at Rs5,550), 3,000 bales Nawabshah (Rs5,950 to Rs5,985), 1,400 bales Saleh Pat (Rs6,300), 1,400 bales Rohri (Rs6,300 to Rs6,350), 1,200 bales Ghotki (Rs6,00), 2,000 bales Dharki (Rs6,550), 1,400 bales Ahmedpur (Rs6,425), 1,200 bales Liaquatpur (Rs6,400 to Rs6,450), 1,200 bales Rahimyar Khan (Rs6,500 to Rs6,550) and 1,400 bales Khanewal (Rs6,550 to Rs6,600).

According to brokers, the next phutti (seed cotton) arrivals report which is due in a couple of days, likely not going to give encouraging picture because the current crop is being anticipated to come to an end much earlier.