KARACHI: Cotton price rose to a seasonal high on Monday as dwindling cotton stocks held by ginners prompted panic buying.
According to market reports, ginners hold fewer than 250,000 bales at present. The rising trend in cotton prices in early trading in the New York cotton market and elsewhere was reported to be another factor which induced sentiment, brokers said. Ginners were also reluctant to dispose of their stocks at this juncture as they are expecting to get higher rates in the coming days.
The new season crop sowing is in full swing in lower Sindh. But in Punjab, wheat crop is still being harvested is some areas.
The overall cotton economy in the world has took an upward turn on strong indications that there would be higher demand for cotton next season as cotton yarn and fabrics markets revived considerably.
The Karachi Cotton Association (KCA) raised its spot rates by Rs100 to Rs5,650 per maund.
Major deals on ready counter were: 1,000 bales from Kotri (at Rs5,600 per maund), 200 bales Ghotki (Rs5,950), 2000 bales Khanpur (Rs5,700 to Rs5,750), 400 bales Multan (Rs5,800), 400 bales Hasilpur (Rs5,800), 1,000 bales Rahimyar Khan (Rs5,900), 400 bales Mianwali (Rs5,600) and 4,000 bales Khanpur (Rs5,800).