Cotton surge to record high

Karachi

Cotton prices hit a record high on Friday, surging to Rs5,950/maund (37.324 kilograms) due to tight supplies.  Turnout remained dull where cautious traders stayed on sidelines, despite the new crop for the 2016/17 season arrived in the market.

Out of total 1200 bales, 600 bales of new crop changed hand in the markets of Sindh. The new crop lint prices ranged from Rs6,200 to Rs6,225/maund. 

Dealers said that spinners and mills were concerned about the shortage of fiber in the market.   “The fast eroding stocks held by the ginneries and a weaker-than-expected cotton production during the ongoing season creating supply constrains,” said a broker at the Karachi Cotton Exchange.   The dearth of commodity is helping rising domestics prices. The spot rate sharply increased by Rs200 to Rs5,950/maund.