Volatile conditions on cotton market
KARACHI: Relentless buying from spinners amid conflicting estimates about cotton production and reports of lesser crop being harvested in India kept lint prices highly volatile on Friday.
Frenzied buying from leading spinners kept cotton prices rising throughout the session and most deals were finalised at the seasonal peak of Rs7,000 per maund.
Reports that Indian cotton crop was suffering from pink bollworm attack led to panic buying. Furthermore, downward revision in the exports of cotton from 7.5m bales to 6m bales by India also sent shock waves, diminishing the hope of importing cotton from neighboring country.
Many spinners have already placed advance orders of up to 200,000 bales in anticipation that Pakistan may lift the ban on cotton imports from India early next year.