KARACHI: Cotton prices rebounded on strong demand from spinners and
some exporters on Tuesday.There was panic buying as doubts about the size of
cotton crop were being raised pushing the lint prices to Rs7,000 per maund, but
surprisingly the Karachi Cotton Association (KCA) kept its spot rates steady at
overnight level.The entire cotton economy is currently in a state of shock
because for the third consecutive season, the crop seems to be heading towards
failure, observed Karachi Cotton Brokers’ Forum chairman Naseem Usman.
High cotton prices are also impacting
yarn prices and the value-added textile sector has been complaining that it is
being rendered uncompetitive on the world market.Meanwhile, private estimates
now place cotton production at around 11 million bales. However, the issue of
quality lint is so grim that spinners are not ready to take any risks and are
opting for imports.Reportedly many spinners have already placed advance orders
with Indian exporters anticipating that the government may lift the ban.
The world leading cotton markets moved
higher under the lead of New York cotton which crossed 70 cents per lb. The
main factor behind rising trend in cotton prices was that December contract on
NY market was rolling out and new contract will be enlisted. The following
major deals were reported to have changed hands on the ready counter: 1,000
bales, Rohri, at Rs6,450 to Rs6,500; 1,200 bales, Khairpur, at Rs6,350 to
Rs6,450; 2,200 bales, Rahimyar Khan, at Rs6,800 to Rs7,000; 800 bales, DG Khan,
at Rs6,800 to Rs7,000; 1,000 bales, Sadiqabad, at Rs6,900; 1,000 bales, Mirpur
Diwan, at Rs6,900; 1,000 bales, Taunsa, at Rs6,800; 2,200 bales, Rajanpur, at
Rs6,650 to Rs6,800; 2,000 bales, Layyah, at 6,350 to Rs6,550; 1,000 bales,
Vehari, at Rs6,350 to Rs6,425; 1,200 bales, Mianwali, at Rs6,400 to Rs6,450;
1,000 bales, Burewala, at Rs6,450; and 600 bales, Liaquatpur, at Rs6,850.
Source: Business Recorder, Pakistan Friday, 24 November 2017