KARACHI: The rising trend in cotton prices continued on Saturday as buyers replenished their stocks at higher level on fears of short crop.

Some leading textile spinners have also started booking import contracts. However, fears of delay in arrival of imported cotton also forced them to buy locally, brokers said.

Since import of cotton form neighbouring India has been banned by the government, the textile industry will have to explore other sources including United States, Brazil, Central Asia and even some African countries.

A huge quantity of around 3.5-4 million bales would still be imported having a bill of around $1.5 billion. Unofficial estimates place the current crop size at around 11m bales.

The world leading cotton markets continued to give mixed price trend with New York cotton recovering part of recent losses. Indian and Chinese markets were also mixed.

The Karachi Cotton Association (KCA) kept its official spot rates pegged at Rs8,650 per maund.

The following deals were finalised on ready counter: 1,600 bales, Tando Adam, at Rs7,900-8,400; 1,200 bales, Saleh Pat, at Rs8,800-8,850; 1,400 bales, Khairpur, at Rs8,700-8,800; 1,000 bales, Shadan Lund, at Rs8,850; 1,200 bales, Haroonabad, at Rs8,800-8,850; and 1,200 bales, Layyah, at Rs8,800.

Published in Dawn, September 29th, 2019