STAFF REPORT KHI: Revival of buying interest has started helping cotton prices stay firm in the local market. Many quality conscious spinners are keen to replenish their stocks on higher arrival of new crop.
With higher phutti arrivals (seed cotton) more ginning units have started operations in Punjab and Sindh. Consequently, buying interest in new crop is gaining momentum, said the cotton dealers.
Meanwhile, due to heavy rains and poor quality of Indian cotton is creating demand from across the border for Pakistani cotton, they said.
According to official figures up to June 30 the Indian crop is short by around 0.6 million bales on year to year basis.
While Indian importers are keen to enter into more transactions with Pakistani exporters and have already finalised around 2,000 bales deals, brokers said.
Strong demand from major cotton consuming countries is pushing cotton prices up.
However, the Karachi Cotton Association (KCA) revised downward its spot rates by Rs107 per 40 kg and trading on ready counter was moderate.
The following transactions were reported to have changed hands on Tuesday: New crop: 400 bales from station Sanghar, at Rs6,450 to Rs6,475, 1000 bales, Kotri, at Rs6,450 to Rs6,475, 600 bales, Shahdadpur, at Rs6,450 to Rs6,475, 200 bales, Khipro, at Rs6,475, 400 bales, Mirpurkhas, at Rs6,450.