KARACHI: Reduced flow of phutti (seed cotton) coupled with higher demand pushed lint prices higher on Wednesday. The underlying sentiment also remained strong.

Floor brokers said fresh fall in the rupee’s value against the US dollar encouraged spinners to build up their stocks.

They added that exporters also moved in to procure lint to meet their export commitments because of rupee’s depreciation.

As a result, most deals on ready counter were quoted at increased prices. Brokers said that both Punjab and Sindh varieties were quoted higher by Rs50 to Rs75 a maund against overnight rates.

The world cotton markets rebounded where New York cotton recovered recent losses as all future contracts ended with modest gains.

The Karachi Cotton Association (KCA) raised its spot rates by Rs50 to Rs5,400 a maund.

Trading on ready counter was fairly brisk and the following major deals changed hands: 1,000 bales Hyderabad at Rs5,350 to Rs5,400; 1,200 bales Mirpurkhas at Rs5,350 to Rs5,400; 1,800 bales Sanghar at Rs5,350 to Rs5,400; 1,600 bales Shahdadpur at Rs5,450 to Rs5,500; 800 bales Hasilpur at Rs5,475 to 5,500; 800 bales Khanewal at Rs5,500; 600 bales Chichawatni at Rs5,500; and 600 bales Sahiwal at Rs5,500.

The following are Wednesday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Published in Dawn, August 21st, 2014