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Related Keywords: Karachi cotton exchange, leftover stock of commodity low, next harvesting delayed, Pakistan local cotton market, price surged five month high, prime quality cotton, remained unchanged, spot rate, taking fresh postion, textile mill owners, to buy cotton bales

Prime quality cotton price surged to five-month high at Rs5,340 per maund (37.324 kilograms) at the local markets on Thursday as many textile mill-owners were taking fresh positions in prime quality cotton because of two reasons; one the leftover stock of the commodity was low. Secondly, the next harvesting of the commodity is delayed by two to four weeks.

According to Naseem Usman, a broker at the Karachi Cotton Exchange, the increase in cotton price is seen following a surge of Rs100 per 40kg in phutti (seed cotton).

Related Keywords: buying cotton, cotton dealers, Karachi cotton exchange, Pakistan cotton market, prime quality cotton, textile mill owners, world benchmark cotton market

As several textile mill owners have resumed buying cotton on conflicting reports that the supply of the commodity remained low during the last two weeks. According to cotton dealers, trade turnover of cotton spiked four-fold to 15,800 bales (of 155 kilogram each).

According to Naseem Usman, a broker at Karachi Cotton Exchange, the next fortnightly production report, which is scheduled to be unveiled tomorrow {Wednesday}, may reveal lower production in the last two weeks.

Also the country may face shortage of prime quality cotton, if not of poor qualities.

Related Keywords: big textile miller, cotton production season, decline in cotton price, local market, Pakistan cotton market, prime quality cotton, the Karachi Cotton Exchange

With some few big textile millers returned to local markets to purchase prime quality cotton available at a reasonable price, cotton market in Pakistan witnessed raise in trade turnover at two-week high of 31,800 bales (155 kilograms). As delay in purchase may cost traders lose the opportunity to acquire the available prime quality cotton.

Another reason to rejoin local markets to purchase was that the quality cotton is usually not available at lower price in the end of the cotton production season.