KARACHI: Sustained buying interest from spinners kept cotton prices on the higher side on Saturday. The sudden fall in rupee value against the US dollar has kept buyers at the forefront for the fourth consecutive session.

There are signs that the supply of quality cotton is falling, with even second grade cotton being in great demand — a strong indication that buyers are not ready to take the risk of imports which have become costlier due to rupee value depreciation during the week.

The sudden drop in lint production in India, where a pest attack on cotton crop has altogether changed the dynamics of world cotton economy, has forced spinners to focus on Pakistani cotton.

Extensive damage to the cotton crop in India has also influence New York cotton where prices continued to rise as most importing countries sought other options. NY cotton touched a seasonal high at US75.92 cents per lb.

The Karachi Cotton Association for fourth consecutive session on Saturday rose spot rates by Rs50 to Rs7,000 per maund.

The following deals were reported to have changed hands on ready counter: 400 bales, Ghotki, at Rs7,500; 400 bales, Saleh Pat, at Rs6,900; 7,200 bales, Khan­pur, at Rs7,300 to Rs7,500; 4,800 bales, Rahimyar Khan, at Rs7,350 to Rs7,500; 800 bales, Mirpur Diwan, at Rs7,350 to Rs7,500; 600 bales, Sadiqabad, at Rs7,500; 1,200 bales, Jalalpur, at Rs7,400; 400 bales, Mian Channu, at Rs7,300; 1,400 bales, Haroonabad, at Rs6,400 to Rs6,650; 1,400 bales, Layyah, at Rs6,425 to Rs6,550; and 800 bales, Faqirwali, at Rs6,575.

Published in Dawn, December 17th, 2017