By admin       2017-10-24

KARACHI: Cotton prices surged on Monday, backed by strong buying for quality lint. Fearing shortage of quality cotton, spinners indulged in panic buying. Though cotton crop production estimates continues to be over 12.5 million bales for current season but quality issues have been keeping spinners on their toes. Monsoon rains in lower Sindh and Punjab caused damage to standing cotton crop in both the provinces. Due to excessive heat wave, the crop could not mature properly in Punjab. The rush for quality cotton also pushed phutti (seed cotton) prices higher, with Punjab variety being quoted between Rs2,900-3,200 and Sindh quality in the range of Rs2,700-3,100 per 40kg. Cotton prices on ready deals also moved higher and touched Rs6,400 per maund. Meanwhile, in India, the state government of Gujarat has announced Rs50 bonus for growers over and above the Minimum Support Price. This incentive is expected to push cotton prices higher from current rate of Rs37,000 per candy to Rs39,000 per candy, analysts said. New York cotton, however, remained under pressure owing to depressed dollar rate against other major world currencies. The Chinese market closed firm on Monday. The Karachi Cotton Association (KCA) spot rates were firm at week-end level. The following major deals were reported to have materialised on ready counter: 1,000 bales, Tando Adam, at Rs5,500 to Rs5,900; 4,000 bales, Khairpur, at Rs6,225 to Rs6,275; 2,000 bales, Rohri, Rs6,250 to Rs6,300; 2,000 bales, Saleh Pat, at Rs6,300; 2,000 bales, Ghotki, at Rs6,350 to Rs6,400; 1,200 bales, Hasil­pur, at Rs6,150 to Rs6,175; 1,600 bale, Kahror Pakka, at Rs6,175; 1,600 bales, Fort Abbas, at Rs6,175; 3,600 bales, Mianwali, at Rs6,200 to Rs6,250; 2,000 bales, Khanewal, at Rs6,250 to Rs6,275; 1,600 bales, Ahmed­­pur, at Rs6,250 to Rs6,300; 1,000 bales, Dera Ghazi Khan, at Rs6,300; 1,400 bales, Fazilpur, at Rs6,300; 1,000 bales, Moham­­madpur Diwan, at Rs6,300; 1,400 bales, Rajanpur, at Rs6,300; and 3,400 bales, Rahimyar Khan, at Rs6,300 to Rs6,350.

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