Cotton prices soar
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.