MULTAN: Strong demand kept cotton prices on the higher side on Thursday amid short supply. The Karachi Cotton Association kept its spot rate unchanged at Rs5,750 per maund (about 38 kilograms).

Cotton brokers said prices in the cotton market were firm as ginners have held the stock of both new and old crops.

They said ginners of both Pakistan and India were holding the stock due to the increasing trend in the prices as they are hoping that the prices will further increase.

Usually the spinning mill owners dominate the cotton market but now ginners are leading the market.

Prices of benchmark Indian cotton variety Shankar-6 has further increased by 400 Indian rupees to 42,700 per candy (355.6kg).

Prices of future deals have also increased in the New York cotton market.

The brokers said prices would rise further after Eidul Fitr.

Prices of phutti (seed cotton) in Sahiwal were Rs3300 per maund, Hasilpur Rs3400, Mian Channu Rs3150, Bahawalnagar Rs3200, Pakpatan Rs3225, Arifwala Rs3325, Chishtian Rs3400, Hyderabad Rs3275, Badin Rs3250, Degree Rs3300, Kunri Rs3150 and Tando Allah Yar Rs3250.

Major deals on the ready counter were: 800 bales (170kg) from Khanewal at Rs5800, 200 bales Sultanabad at Rs4650 and 1200 bales Rahim Yar Khan at Rs5950. Deals of new crop included: 200 bales from Sahiwal at Rs6300, 400 bales Burewala at Rs6300, 400 bales Hyderabad at Rs6225, 600 bales Khangarh at Rs6200 and 200 bales Shahdadpur at Rs6250.

Published in Dawn, July 1st, 2016