KARACHI: Cotton prices rebounded on strong demand from spinners and some exporters on Tuesday.

There was panic buying as doubts about the size of cotton crop were being raised pushing the lint prices to Rs7,000 per maund, but surprisingly the Karachi Cotton Association (KCA) kept its spot rates steady at overnight level.

The entire cotton economy is currently in a state of shock because for the third consecutive season, the crop seems to be heading towards failure, observed Karachi Cotton Brokers’ Forum chairman Naseem Usman.

High cotton prices are also impacting yarn prices and the value-added textile sector has been complaining that it is being rendered uncompetitive on the world market.

Meanwhile, private estimates now place cotton production at around 11 million bales. However, the issue of quality lint is so grim that spinners are not ready to take any risks and are opting for imports.

Reportedly many spinners have already placed advance orders with Indian exporters anticipating that the government may lift the ban.

The world leading cotton markets moved higher under the lead of New York cotton which crossed 70 cents per lb. The main factor behind rising trend in cotton prices was that December contract on NY market was rolling out and new contract will be enlisted. The following major deals were reported to have changed hands on the ready counter: 1,000 bales, Rohri, at Rs6,450 to Rs6,500; 1,200 bales, Khairpur, at Rs6,350 to Rs6,450; 2,200 bales, Rahimyar Khan, at Rs6,800 to Rs7,000; 800 bales, DG Khan, at Rs6,800 to Rs7,000; 1,000 bales, Sadiqabad, at Rs6,900; 1,000 bales, Mirpur Diwan, at Rs6,900; 1,000 bales, Taunsa, at Rs6,800; 2,200 bales, Rajanpur, at Rs6,650 to Rs6,800; 2,000 bales, Layyah, at 6,350 to Rs6,550; 1,000 bales, Vehari, at Rs6,350 to Rs6,425; 1,200 bales, Mianwali, at Rs6,400 to Rs6,450; 1,000 bales, Burewala, at Rs6,450; and 600 bales, Liaquatpur, at Rs6,850.

Published in Dawn, November 22nd, 2017