Continual demand for quality lint and depleting stock pushing cotton prices up

The Pakistan textile industry as a whole is presently in distress over dwindling cotton stocks and expected delay in the arrival of next crop due to late sowing of new crop (2015-16), according to brokers.

Continual demand for quality lint and running down with cotton stocks in the country pushed the cotton prices up on Thursday.

Ginners on the other hand are in no hurry to dispose of their stocks in anticipation of getting even higher prices. They entertained only those bids which had been called at higher rates.

The following were Thursday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/16” micronair value between 3.8 to 4.9 NCL.

The Karachi Cotton Association (KCA) spot rate remained unchanged. On the ready counter, the following deals were finalised: 400 bales from Kot Lalo done at Rs4600, 400 bales Mirpurkhas at Rs4800, 200 bales Kasoowal at Rs5150 to Rs5300, 400 bales Ahmedpur at Rs5275, 200 bales Multan at Rs5300, 200 bales Jalalpur at Rs5400, 200 bales Vehari at Rs5500, 600 bales Chichawatni at Rs5550, 1000 bales Rahimyar Khan at Rs5500 to Rs5600 and 400 bales Khanpur at Rs5600.

On the global front, the world cotton markets remained easy due to slow off-take and exports. The New York cotton market closed lower for the second straight session for all future contracts.

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