The Newspaper's Staff Reporter | March 07, 2018
KARACHI: Renewed buying interest at the lower level was witnessed on the cotton market on Tuesday. There was no new development which could have induced sentiment. However, the availability of quality cotton resulted in some trading activity.
As the current cotton season is coming to a close, supply of quality lint is also running short. Presently less than 0.6 million bales are lying with ginners — a sign that there is little chance of getting larger quantity of quality cotton.
There is a strong demand for lint in the domestic market after prices in the world leading cotton markets lately started to surge.
New York cotton closed at a season high level of US 86 cents per lb. Cotton prices in India also rose by Rs400 to Rs41,300 per candy (356kg) while the Chinese market was also up. Though there is no major development responsible for the sudden increase in international cotton prices, however a weaker dollar against other world currencies is reckoned to be a possible factor.
The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs7,100 per maund.
Trading on ready counter was fairly moderate as needy spinners went for quality cotton. The following deals were reported to have changed hands on ready counter: 7,000 bales, Alipur, at Rs7,000; 400 bales, Jalalpur, at Rs7,100; 2,487 bales, Rahimyar Khan, at Rs7,300; and 800 bales also, Rahimyar Khan, at Rs7,000. (Source: dawn.com)