KARACHI: Steady flow of buying orders kept cotton prices firm on Wednesday. However, activity could not expand as sellers were reluctant to make new deals.
Market sources said that though there was strong demand for quality cotton from spinners, ginners preferred to hold back their stocks in anticipation of getting higher price in the coming days.
Spinners have once again started importing cotton; around 30,000 bales have been imported from West Africa last month, brokers said. Earlier this season, spinners imported a fairly large quantity of cotton from India.
The depleted stocks of around 200,000 bales lying with ginners and delay in arrivals of next crop have forced spinners to import more cotton because they will have to wait for more than three months for arrival of new crop.
Meanwhile, cotton sowing in the lower Sindh is going on in full swing whereas in Punjab growers have started preparing land after harvesting wheat crop, brokers said.
The Karachi Cotton Association (KCA) raised its spot rates for second straight session by Rs50, to Rs5,650 per maund.
Major deals on the ready counter were: 400 bales from Mianwali (at Rs5,150 per maund), 600 bales Ahmedpur (Rs5,250), 400 bales Khanewal (Rs5,300) and 2,000 bales Chani Goth (Rs5,900 to Rs6,000).