KARACHI: Sustained demand for quality lint on Thursday pushed prices further higher. Leading spinners and some exporters eagerly replenished their stocks to meet their demand.

However, many spinners were disappointed for not getting deals of their choice due to short supply of quality lint. The strong demand kept pushing prices higher on ready deals though activity could not expand.

Market analysts believe that the ginners are currently holding stocks which could only meet raw cotton demand by end April and thereafter, there will be a gap of four months before new crop starts arriving.

The phutti (seed cotton) prices also moved higher as demand for cotton keeps rising from industry.

However, dwindling stocks with ginners are a cause of concern from spinners, brokers said.

Exports to European markets are being badly hit by weak Euro because exporters are unable to get right price for their goods to EU. The yarn market is also behaving sluggish but shortage of quality lint is keeping prices steady.

The New York cotton moved lower for all future contracts and other world markets also remained easy.

The Karachi Cotton Asso­cia­­tion (KCA) spot rates were unchanged at overnight level.

The following deals were reported to have changed hands on the ready counter: 500 bales from Chichawatni finalised at Rs4900, 400 bales from Dharanwala at Rs5000, 1000 bales from Haroonabad at Rs5000 to Rs5100, 600 bales from Fort Abbas at Rs5000 to Rs5100, 200 bales from Uch Sharif at Rs5200, 200 bales from Burewala at Rs5200, 100 bales from Chotti Zareen at Rs5300, 200 bales from Sadiqabad at Rs5300 and 600 bales from Rahimyar Khan at Rs5340.

The following are Thursday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/16” micronair value between 3.8 to 4.9 NCL.

Published in Dawn, March 27th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play