High demand spikes up cotton prices
With the arrival of the fresh cotton in the market, both growers, and ginners became optimistic to strike better deals.
During the week starting from August 4 to 9, the market remained in the tight grip of traders.
On Monday, although demand for cotton among buyers was quite high, market remained stable. Spinners and millers were piling up the stocks of lint at a price given by the ginners and growers.
On this day cotton lint was traded at Rs4,250 per maund, where as Karachi Cotton Association settled prices of cotton at Rs4,150 per maund.
Large mills and spinners procured lint of all qualities at a high price on Tuesday. On this day, around 400 bales of cotton exchanged hands in the regions of Sindh and Punjab, with in the range of Rs4,250 to Rs4,300 per maund.
Cotton price at the KCA spot market stood at Rs4,200 per mound, reflecting a rise by another Rs50 per mound.
On Wednesday, fine lint from Sindh saw a higher demand in the market and a sizable chunk was purchased by large mills. Near about 400 bales of cotton were traded in Punjab and Sindh, at about Rs4,200 to Rs4,300 per maund.
Cotton prices remained firm at Rs4,200 per mound at the spot market.
According to Mr Ghulam Rabbani, Director of Karachi Cotton Association, the spot rate at KCA was settled at Rs4250 per maund with another hike of Rs50 per mound, which is an all times high on the ranking slot in the country's history, on Thursday.
The markets of Tando Adam, Shahdadpur, Pir Mahal, Pak Pattan, and Khanewal exchanged around 200 bales of cotton, each, at about Rs4,225 to Rs4,300 range.
On Friday, spot rates for cotton at KCA remained firm at Rs4,250 per mound.
In the domestic market 200 bales each from Sanghar and Shahdadpur were sold at Rs4175 per mound. 300 bales each from Harrapa and Khanewal were traded at Rs4275 per mound.
Mr Rabbani further informed that, on Friday, a total of 413 contracts were traded for October cover and the volume of contracts traded under December 08 cover was 8506.
On Saturday, the spot rate at KCA moved to a lower position on the ranking slot and the settlement declared at Rs4,150 per maund with a decrease of Rs100 per mound.
Around 800 bales of cotton from Sultanabad were sold with in the range of Rs4125 to Rs4075; around 3000 bales of Tando Adam were sold at Rs4125 to Rs4175; near about 2200 bales from Shahdadpur changed hands at Rs4100 to Rs4150; about 100 bales of cotton from Hyderabad were traded at Rs4150. Khipro Taluka sold around 200 bales for Rs4125; around 1000 bales of Sanghar were sold at Rs4150, while 600 bales of Mirpurkhas changed hands at Rs4175.
Presently, the spot rates at the Karachi Cotton Association (KCA) remained firm at Rs4,150 per maund and demand for fine lint moved on to the higher side.
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Fibre2fashion News Desk - India