KARACHI: Brisk activity was witnessed on the cotton market on Friday as buyers rushed to replenish their stocks fearing further rise in lint prices in the coming days.
Floor brokers said that at the outset buyers cashed every deal came there way which pushed prices higher to a seasonal peak of Rs5,500 per maund.
Buyers indulged in panic buying as latest figures of cotton production released by the ginners’ body indicated a year-on-year fall of around 5.037 million bales this season.
The delay in early sowing of cotton in Punjab due to recent rains and rising trend being witnessed in the world cotton markets were other factors which forced spinners to come back into the trading ring.
Ginners are currently holding around 600,000 bales whereas arrivals from the next cotton crop are far away, brokers said.
The Karachi Cotton Association (KCA) raised its spot rates by Rs50 to Rs5,250 per maund. Major deals on ready counter were: 1800 bales from Ghotki (Rs5100 to Rs5200), 1000 bales from Rohri (Rs5300), 719 bales from Khanewal (Rs4900 to Rs5500), 1200 bales from Rahimyar Khan (Rs5250 to Rs5400), 600 bales from Sadiqabad (Rs5300 to Rs5400), 600 bales from Ahmedpur (Rs5450), 600 bales from Liaquatpur (Rs5450) and 400 bales from Rajanpur (Rs5500).
The world cotton markets also maintained their previous rising trend with New York cotton finishing higher for all the future contracts, except far-off March 2017.