KARACHI: Demand for cotton remained strong for the seventh consecutive session on Tuesday as spinners seemed to be in panic amid dwindling stocks.
Factors such as global rising trend in cotton prices coupled with short supply of cotton on the domestic market surged lint prices to a new seasonal high of Rs6,000 per maund.
According to reports, climate change has made it difficult to estimate global cotton crop size as it is prone to pest attack on a slight change in temperature, brokers said.
However, global reports that textiles and clothing demand would rise next season and give support to cotton demand and prices was an encouraging sign for the growers and textile industry as a whole, they added.
China is going to dispose of cotton in world market at 10 US cents higher than the current rates. However, the move is expected to have no negative impact on prices.
The Karachi Cotton Association (KCA) left its spot rates unchanged. Major deals on ready counter were: 2,200 bales from Ghotki (Rs5,900 to Rs5,950), 1,700 bales Layyah (Rs5,175 to Rs5,200), 600 bales Sardar Garh (Rs5,400), 200 bales Muhammadpur Dewan (Rs5,500), 400 bales Ahmedpur (Rs5,600), 2,600 bales Rahimyar Khan (Rs5,850 to Rs6,000) and 2,000 bales Sadiqabad (Rs6,000).
All the leading cotton markets the world over moved higher including New York cotton which finished with handsome gains for all the future contracts.
Published in Dawn