Strong demand for cotton hiked prices on Monday as spinners clicked higher bids in order to get quality lint to meet their seasonal requirements.
The cotton stocks are depleting fast and the shortage of quality lots have depressed small spinners on the market. Additionally, delay in the arrival of next crop due to the shortage of water in Sindh is also a growing concern for the textile industry.
Most of the deals in buying/selling cotton were finalized at higher rates, snippers, as their requirements are not changing, had to get their hands on lower quality lots at even higher rates, also the ginners are holding less than 0.6 million bales according to brokers.
According to the reports by Dawn and Express, many Pakistani Spinners who participated in Yarn Expo in China were offered with many export orders of Yarn from Pakistan but due to price differences, the deals could not be finalized.
However, the Karachi Cotton Association (KCA) has kept its spot rates steady at weekend levels. Some deals at the following rates were finalized;
2000 bales Dherki at Rs.7,700, 200 bales Sheher Sultan at Rs.7,400, 400 bales Ghotki at Rs.7,725, 600 bales Rahimyar Khan at Rs.7,500, 223 bales Burewala at Rs.7,200 and 400 bales Khanewal at Rs.6,300.