Panic buying on cotton market
MULTAN: The cotton prices on Thursday moved higher on panic buying from spinners amid fears of an expected short crop.[TOP]
The Karachi Cotton Association also increased its spot rates by Rs50 to Rs8,950 per maund.
Cotton experts said the phutti arrivals have decreased substantially and there is an acute shortage of lint in the market.
The increase in dollar value against the rupee is forcing spinners to procure the commodity actively.
The country has been unable to achieve the earlier target set by the agriculture ministry at 15 million bales which was revised down to 10.2m bales by the Cotton Crop Assessment Committee. Currently there is a shortfall estimated 40-45 per cent.
Market sources said ginners are reluctant to enter into deals on the prices being of fered by mills. On the other hand, the middlemen have stopped selling cotton to ginners. Farmers have also stopped the picking process.
The following deals were reported to have changed hands on ready counter: 2,000 bales, station Rahim Yar Khan, at Rs9,300; 800 bales, Sadigabad, at Rs9,325; 600 bales, Khanpur, at Rs9,100; 1,000 bales, Ahmedpur East, at Rs8,850; 800 bales, Bahawalpur, at Rs8,500; 1,200 bales, Lodhran, at Rs8,775; 200 bales, Faqirwali, at Rs8,500; 600 bales, Layyah, at Rs8,400; 400 bales, Rajanpur, at Rs8,700; and 200 bales, Ghotki, at Rs9,200.