KARACHI: Cotton prices soared to a brand new excessive degree on Friday on brief provide of phutti (seed cotton) and rising demand from spinners.
Reviews of rains in most cotton-rising areas in Punjab and Sindh triggered panic shopping for. However the buying and selling quantity remained sluggish and restricted on account of brief provide.
The home market was additionally influenced by international development the place most main cotton markets remained bullish. The New York market gained over two US cents per lb for October 2016 contract.
Furthermore, spinners are reluctant to purchase at this stage as moisture content material in phutti after downpour has resulted in low high quality of lint.
Nevertheless, excessive demand from some needy spinners pushed costs to a seasonal excessive of Rs7,040 per maund (round 38 kilograms). However brief provide of high quality cotton stored the proceedings devoid of a lot wanted exercise.
In line with figures just lately launched by the textile commissioner, cotton consumption was round 14.forty two million bales throughout August 2015 to Might 2016. Equally, spinners put consumption of cotton in June 2016 at 1.4m bales.
Cotton analyst Naseem Usman contested these figures, saying that if this knowledge was right then why All Pakistan Textile Mills Affiliation stored claiming that the business was operating beneath capability on account of excessive value of doing enterprise and energy disaster.
The Karachi Cotton Affiliation elevated its spot charges by Rs250, to Rs6,650 per maund.
Main offers on the prepared counter have been: 200 bales from Mirpurkhas (at Rs6,790 per maund), 200 bales Sanghar (Rs6,800), one hundred bales Chichawatni (Rs7,000), 200 bales Gojra (Rs7,025) and one hundred bales Haroonabad (Rs7,040).
Revealed in Daybreak, August sixth, 2016
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