KARACHI: Cotton prices moved higher on Monday amid sustained demand from spinners and exporters. The underlying sentiment was also steady and firm.

Trading was firm as buyers remained in the forefront and prices tended to move higher due to short cotton supply.

Brokers said that slow arrivals of phutti (seed cotton) due to current spell of rains in Punjab disturbed demand and supply situation.

Though the ongoing slow to moderate rains are being taken as an encouraging development for the standing cotton crop, brokers fear more rains would damage the crop.

Cotton prices on ready deals touched season’s high level at Rs5,800 per maund.

The Karachi Cotton Association (KCA) spot rates were firm at previous level.

The following major deals were made on ready counter: 1,000 bales Sanghar at Rs5,600 to Rs5,650; 1,000 bales Mirpurkhas at Rs5,600 to Rs5,650; 800 bales Shahdadpur at Rs5,650; 800 bales Tando Adam at Rs5,650; 800 bales Burewala at Rs5,700 to Rs5,800; 200 bales Jhang at Rs5,800; and 200 bales Duniyapur at Rs5,800.

Published in Dawn, September 2nd , 2014