Cotton prices soar to rupees 6,600

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KARACHI: The speculative price flare-up continued on the cotton market unabated on Thursday as ginners further raised their asking prices in tandem with falling unsold stocks.According to official sources, some of the fine lots from Rahimyar Khan were traded at record Rs6,600 per maund, echoes of which were circulating on the kerb market late on Wednesday evening. The crisis-like situation developing on the supply front could push prices to any highs in the coming sessions as spinners and mills have no choice but to shutdown their business or pay the higher price for the raw material, many analysts believe.As the unsold stock is drying up the cotton prices are rising in a mad rush to grab the floating stock irrespective of the price tag, they said. Floor brokers said ginners who still holding a good part of the unsold stock were now eyeing the Rs7,000 per maund. The persistent surge in the New York cotton futures on strong global demand and the Indian ban on lint export has further accentuated the local supply position and the pressure would continue as the imports have now become more expensive.The New York cotton futures were quoted further higher at 83.04 and 85.16 cents per lb for both the ruling May and the forward July contracts respectively after having opened at 82.99 and 84.90 cents per lb.The official spot rates were quoted further higher by Rs200 per maund at Rs6,200 per maund for an average quality lint but fine lots were traded as higher as Rs6,600.The following notable deals were finalised in the ready section on Thursday evening: 2,000 bales, mill-to-mill at Rs6,200, 800 and 620 bales, Sanghar and Rahimyar Khan at Rs6,500, 600 bales, Rahimyar Khan at Rs6,600, 600 bales, Khanpur at Rs6,200 and 200 bales, Kehror Pacca at Rs6,275.

Courtesy : Dawn


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