KARACHI: The strong demand and buying of quality lint have caused hike in cotton prices to Rs5,840 per 40kg.
According to the dealers, the decreasing cotton stocks in the country and higher demand from the spinning industry are the main factors driving cotton prices higher. There is also some panic buying from spinners because of expected delay in the arrival of new crop.
The Karachi Cotton Association (KCA) spot rates remained unchanged. However, most deals on ready counter were finalised on higher prices as ginners are reluctant to dispose of their stocks anticipating higher rates, brokers added. The deals included: 400 bales from Shahdadpur done at Rs4750, 400 bales Rohri at Rs5000, 200 bales Khanpur Mehar at Rs5150, 400 bales Ghotki at Rs5300, 400 bales Vehari at Rs4700, 200 bales Multan at Rs5200, 600 bales Shujabad at Rs5200 to Rs5400 and 400 bales Rahimyar Khan at Rs5500.
