The price of cotton increased to one-year high of Rs7,400 per maund (37.324 kilograms) at the local markets, dealers said on Thursday.
Accordingly, the Karachi Cotton Association revised up its cotton spot (average) rate by Rs100 per maund to Rs7,100 per maund, a dealer said.
“Some traders have reportedly bought cotton at one-year high price of Rs7,400 per maund at the local markets,” Naseem Usman, a broker at the Karachi Cotton Exchange, said.
He said that volatility in the local currency kept cotton price on the higher side. “Further depreciation in the rupee may take the cotton price to new high,” he said.
The broker said that continuous increase in the demand for cotton from spinning mill-owners was also suggesting ginners to ask for higher price for cotton from buyers.
Meanwhile, traders exchanged a total of 15,400 bales at Rs7,000 to Rs7,300 per maund as compared to 14,400 bales traded at Rs6,950 to Rs7,200 per maund a day ago, the KCA reported. At New York cotton market, October futures contract increased by 0.27 cents per pound to 84.65 cents, while December futures contract up by 0.13 cents per pound to 84.42 cents, it reported.