KARACHI: Cotton prices surged on Thursday on the back of panic buying from spinners and some exporters.
The slow arrivals of phutti (seed cotton) have been a cause of concern for buyers.
Floor brokers said the slow arrival of phutti triggered panic buying from some spinners who seem to be in a hurry to build up their stocks, thereby pushing up lint prices to a seasonal record level.
Cotton production is feared to be much lesser than government estimates of 13.38m bales. As a result, many leading textile groups have already entered into imports to meet their demand, brokers added.
However, it is yet to be ascertained if the slow arrival of phutti to the ginners is being deliberately done by growers or because of shorter crop, they added.
Phutti prices along with cottonseed cakes are also rapidly rising, brokers said.
Though the KCA kept spot rates at previous level but world cotton markets recorded upward trend led by New York market.
Major deals on ready counter were: 1,000 bales from Tando Adam at Rs4,800-4,900, 1,000 bales Nawabshah, at Rs5,100-5,150, 1,000 bales Khairpur, at Rs5,200-5,250, 1,000 bales Upper Sindh at Rs5,300-5,350, 600 bales Alipur at Rs5,200, 1,600 bales Fazilpur at Rs5,300-5,350, 1,000 bales Layyah at Rs5,300 to Rs5,350, 400 bales Sadiqabad at Rs5,300, 1,200 bales Rajanpur at Rs5,300, 600 bales Fort Abbas at Rs5,225 to Rs5,300 and 600 bales, Dera Ghazi Khan, at Rs5,250 to Rs5,300.
Published in Dawn, October 9th, 2015
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