KARACHI: Rising demand for quality cotton pushed prices higher on Friday as spinners and exporters were seen active in replenishing their stocks.
Many official forums had given incorrect cotton production figures. This caused caution among buyers who began to chase quality cotton which is currently readily available. Brokers said that cotton production estimates will be confirmed once the Cotton Crop Assessment Committee (CCAC) meets in Islamabad on September 12.
Since phutti (seed-cotton) arrivals from Punjab have yet to achieve their normal flow, some cotton analysts believe that after Muharram it would gain momentum and quality cotton would be adequately available. However, annual domestic consumption by textile mills for cotton stands at around 14-15 million bales, which was no more than 10-11m during the past season. At this stage, it could be said that demand is higher than supply which has soared the prices for ready trading, brokers added.
On the global front, New York cotton and Indian cotton were reported to have closed easy, but Chinese market stood firm.
The Karachi Cotton Association (KCA) spot rates were further revised upward for the second day running today by Rs50 to Rs8,200 per maund.
The following major deals were reported to have changed hands on the ready counter: 1,400 bales from station Tando Adam were done at Rs8,150 to Rs8,175; 2,000 bales, Shahdadpur, Rs8,125 to Rs8,175; 1,000 bales, Sanghar, Rs8,125 to Rs8,175; 600 bales, Kotri, Rs8,100 to Rs8,125; 1,000 bales, Khairpur, Rs8,175 to Rs8,200; 400 bales, Khanewal, Rs8,300 to Rs8,390; 600 bales, Mian Channu, Rs8,350 to Rs8,390; 200 bales, Mianwali, Rs8,350; 600 bales, Chistian, Rs8,250 to Rs8,300 and 200 bales from Chichawatni were done at Rs8,300.
Published in Dawn, September 8th, 2018