KARACHI: Cotton prices soared again on Monday as buyers rushed to get hold of any deal which came for sale. However, shortage of quality lint because of limited unsold stocks held by ginners is keeping activity restricted.

Floor brokers said that with reports of late arrivals of new crop in Punjab gaining strength, spinners are becoming more cautious. Even at rising prices the spinners tried to get hold of any quantity which might come for offer, but they were generally disappointed because quality lint was not available.

Even medium quality cotton is being offered at higher price and needy millers are readily lifting it due to acute shortage, floor brokers said.

The Karachi Cotton Association (KCA) raised its spot rates for third straight session by Rs50, to Rs6,850 per maund. However, trading on ready counter remained slow and limited.

The following deals were reported to have changed hands on ready counter: 200 bales, Vehari, at Rs6,850; 200 bales, Garhmaraja, at Rs6,850; 100 bales, Mailsi, at Rs6,875; and 1,700 bales, Sadiqabad, at Rs7,000.

The following are Monday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Published in Dawn, May 20th, 2014