Commodities: Cotton prices stay bullish
KARACHI: Cotton prices maintained bullish trend on Monday amid sustained demand from leading spinners who kept chasing quality lots to build up their stocks.
Rumours that withdrawal of 5 per cent sales tax on import of cotton is under consideration also induced buying sentiment.
As the crop size is being estimated to be not more than 11-11.5 million bales this means that around 4m bales would have to be imported to meet the domestic demand. The phutti (seed-cotton) prices also moved higher in sympathy with cotton rates. The Sindh variety was quoted between Rs3,800 to Rs4,200/40kg; Punjab’s at Rs3,800 to Rs4,300 and Balochistan at Rs3,700 to Rs4,400.
However, after the reduction in gas prices for the Punjab industry, a large number of textile units are expected to revive and this may further increase the demand for cotton, brokers said.