KARACHI: The cotton market on Wednesday maintained firm outlook amid sustained demand from buyers.
Higher yarn exports forced textile spinners to replenish their cotton stocks at maximum level from local market as imported cotton has already become costly due to massive devaluation of the rupee.
A dispute over removal of the condition to obtain Export Price Certificate (EPC) for export of yarn between spinners and value-added textile sector has created demand for cotton from the spinning industry, brokers said.
The value-added textile sector strongly believes that removing the condition of obtaining EPC will not only create shortage of yarn in domestic market but also push up its prices.
Internationally, New York cotton markets remained bullish with all future contracts recording fresh gains. Indian cotton also moved higher between Rs100-300 per candy while Chinese cotton was firm.
The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs8,800 per maund.
The following deals were reported to have changed hands on ready counter: 400 bales, station Liaquatpur, at Rs9,000; 1,960 bales, Rajanpur, at Rs8,950; 1,000 bales, Mian Channu, at Rs8,500; and 1,000 bales, Alipur, at Rs8,300.
Published in Dawn, April 18th, 2019