Spinners concern over higher consumption and reduced stock of cotton

The higher consumption of cotton this season by the textile industry has left reduced stocks of cotton with ginners which is also worrying spinners who have yet to see the season through.

On Tuesday at the cotton market, as quality lint remained in short supply against higher consumption, the cotton prices move upwards. But,the Karachi Cotton Association (KCA) kept its official rates fixed at Rs5,000 per maund.

The cotton analysts failed to understand as to why the KCA left its rates unchanged despite substantial increase in prices on ready deals.

Floor brokers said that spinners seemed to be in panic over the depleted stocks with ginners.

The delay in sowing of next crop due to long spell of rains and winter in both Sindh and Punjab is a major factor which is forcing spinners to build up their stocks.

Major deals finalised on ready counter were: 400 bales from Shahdadpur (conditional) done at Rs4,200, 400 bales Bahawalpur at Rs4,700, 400 bales Sahiwal at Rs4,800, 200 bales Vehari at Rs4,850, 500 bales Khanewal at Rs4,975, 400 bales Muridwala at Rs5,100, 400 bales Shahir Sultan at Rs5,200, 2,000 bales Sadiqabad at Rs5,200 and 1,000 bales Alipur (conditional) 5,300.

On global front, the New York cotton remained under pressure where all future contracts closed with fresh fall.