Cotton price at seasonal high (Pakistan)

The rising demand for cotton in front of short supply pushed cotton prices higher on Saturday to touch a new high this season.

The overnight rising trend in cotton prices intensified on reports that current spell of rains would continue and many cotton-growing areas in Sindh and Punjab have already received substantial rains.

Though rain could be beneficial for cotton crop to some extent in Punjab as the plants are still not fully mature, it may hurt Sindh crop which is currently in flowering stage, brokers said.

The latest US Agriculture Department report suggesting higher cotton imports by some cotton growing countries strongly verifies the fact there was going to be a huge shortfall of cotton against expected consumption.

India has already booked huge quantity of cotton from Australia, South Africa and some other African countries to meet its shortfall. The United States is the only country which has left with exportable surplus, report said.