Cotton prices rise on strong demand
KARACHI, Aug 4: Cotton prices rose on Saturday following an increase in demand by millers and spinners and also due to a rise in global cotton prices.
The Karachi Cotton Association revised up its spot rate by Rs100 per maund to Rs5,805.
In Sindh, cotton was sold between Rs5,800 to Rs5,850 and in Punjab between Rs5,650 to Rs5,700. Phutti prices in Sindh were quoted between to Rs2,625 to Rs2,675 per 40kg and in Punjab between Rs2,500 to Rs2,575.
Brokers said there was extensive buying by millers and spinners which was anticipated and the trend was likely to continue in the near-term.
New York cotton futures also ended at a two-and-a-half month high on Friday on speculative fund buying after a report showed that US employers hiked hiring in July by the most in five months.
Sentiment was also boosted after the Trade Development Authority of Pakistan allowed the State Bank of Pakistan to continue with the registration of cotton sales contract of raw cotton for the crop of 2012-13, which should bode well for exports.
Brokers said around 217 ginning factories had started operations and 30,000 to 35,000 bales of cotton are being produced daily. In July 400,000 bales were produced.
India, one of the largest producers was also inquiring about importing from Pakistan because of a possible drought.
The following transactions were recorded on Saturday on the ready counter:
1,400 bales, Shahdadpur between Rs5,750 to Rs5,800, 1,600 bales, Sanghar between Rs5,750 to Rs5,800, 1,200 bales, Tando Adam between Rs5,750 to Rs5,800, 1,400 bales, Mirpurkhas between Rs5,750 to Rs5,800, 600 bales, Kotri between Rs5,750 to Rs5,800, 800 bales, Hyderabad between Rs5,750 to Rs5,800 and 400 bales, Sahiwal between Rs5,750 to Rs5,800.