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Cotton price moves up
KARACHI: Frenzied buying pushed cotton prices to a new seasonal high of Rs7,300 per maund on Wednesday. Overall, the undertone was strong and underlying sentiment highly aggressive.
There seemed to be no respite in panic buying from needy spinners, which turned the market highly volatile. With the US dollar gaining strength against Pak rupee, panic buying was witnessed.
Buyers chased quality cotton and there were instances that even second-grade cotton came under strong demand. This indicated that spinners feared paying more for imported cotton due to a steep fall in rupee value against the dollar.
The scope of importing cotton from India was also not free of risk after Indian crop suffered severe damage due to a pest attack.