RECORDER REPORT | October 12, 2018
KARACHI: Both mills and spinners indulged in panic buying of cotton amid rising fears of further increase in rates, dealers said.
The official spot rate was higher by Rs 100 to Rs 8500, they added. Prices of seed cotton in Sindh were at Rs 3700-4000, in the Punjab seed cotton prices were at Rs 3700-4300 and in Balochistan, rates of seed cotton were at Rs 3800-4200, they said. In ready session, approximately 35,000 bales of cotton changed hands between Rs 8200-8750, they said.
Market sources said that prices gained momentum on forward buying of cotton by the mills and spinners. In fact, continued increase in the rates of dollar and tight supply of lint cotton, propelled buyers to keep buying to refrain from future losses, they said.
Cotton analyst, Naseem Usman said that rates may move up further in the coming days. Besides, the Pakistan Central Cotton Committee (PCCC) had developed 53 new high yielding seed varieties for cultivation in order to enhance the output of the major cash crop of the country as the committee was also working on war footings to produce high quality seed varieties to boost the cotton production.
To save from losses, cotton advisory has called upon the farmers to start picking of their cotton crop when 50 percent of bolls become fully matured, some experts said. Besides this, bolls should be picked up from the lower part of the plant first and then move upwards gradually, they added. Prices almost moved both ways in the international market, they said. (Source: Business Recorder)