Buying rush moves cotton prices up.
KARACHI -- The rising trend in cotton prices continued on Wednesday with rates touching Rs9,700 per maund as sustained buying kept the proceedings A Abullish.
Short crop continues to haunt textile spinners who are trying to procure big lot deals.
In 2011-12, local cotton prices hit a higher level as the country had exportable surplus. China was a major buyer of Pakistani lint that season.
Unfortunately, in the ongoing 2019-20 season, cotton prices have soared because of short crop, with an expected gap of around 5 million bales. Another factor which is sending shock waves into textile industry the snapping of trade relation with Indian, brokers said.
In order to meet a huge gap between demand and supply, textile industry will have to import cotton from the US and Brazil which would mean higher costs and long period required for arrival, brokers added.
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