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October 18, 2020

Cotton prices hit 10-year high

Business

October 18, 2020

KARACHI: Cotton prices in the local market hit a 10-year high of Rs10,500/maund (40kg) during the outgoing week in tame trade, as rate-wary buyers are holding back waiting for the announcement of cotton arrival numbers for the first half of October, traders said.

Stakeholders informed The News that buyers remained cautious due to high prices, which resulted in lower trade in the market.

Ginners demanded higher prices and some mills purchased cotton at Rs10,500/maund, but it reduced Rs500/maund to Rs10,000/maund by the end of the week, nevertheless, the textile mills are reluctant to buy cotton from ginning factories because of high rates.

Concerns regarding trade and prices persisted throughout the week, as some ginners were eyeing a price of Rs11,000/maund in the market.

Buyers are anxiously awaiting Pakistan Cotton Ginners Association report for cotton arrivals in the factories till October 15, due on October 18.

This cautiousness by the buyers further reduced the trade in the market.

Cotton prices in Sindh province remained at Rs8,800 to Rs9,800/maund while prices in Punjab were recorded at Rs9,400 to Rs10,500/maund during the week.

Cotton prices in Balochistan remained at Rs9,000 to Rs9,200/maund.

On the other hand, Karachi Cotton Association’s Spot Rate Committee increased the spot rate by Rs300 to Rs9,800/maund.

Chairman Karachi Cotton Brokers Association Naseem Usman said prices remained higher around the world throughout the week. “New York Cotton Market rates were up due to various reasons. China has stopped cotton import from Australia, which will increase import from the USA. Cotton prices in India also increased. Brazil, Argentina and Sudan also recorded higher prices of the lint during the week,” Usman added.