KARACHI: Sustained buying interest kept cotton prices steady on Wednesday amid reports that world cotton prices are moving higher owing to short crop in India and higher demand for lint.
Floor brokers said that revival of demand for cotton yarn and fabrics on domestic and world markets kept spinners in the forefront of buying spree but many were disappointed due to short supply of quality lint.
Fear of cotton prices coming under pressure once China enters the world market early next month subsided after it was reported that China would dispose of cotton stocks by 10 US cents per lb higher over the prevailing world cotton prices.
The New York cotton market continued to rise on strong demand from exporters. Besides, reports that India was also faced with short cotton crop triggered buying thereby pushing prices higher, brokers said.
The Karachi Cotton Association (KCA) spot rates were unchanged. Major deals on ready counter were: 400 bales from Ghotki (at Rs5,550 per maund), 2000 bales Rahimyar Khan (Rs5,600 to Rs5,700), 500 bales Sadiqabad (Rs5,500), 1,400 bales Feroza (Rs5,550), 420 bales Faqirwali (Rs5,400), 200 bales Mailsi (Rs5,150), 200 bales Fort Abbas (Rs5,350), 200 bales Hasilpur (Rs5,500), 200 bales Hyderabad (Rs3,400).