KARACHI: Lint prices fell further on Monday under renewed selling pressure as phutti (seed cotton) flow from cotton fields into the ginneries continues to gain momentum.

The receding flood water is gradually paving the way for smooth movement of cotton in Punjab and ginning factories are reported to have started to receive higher volume of phutti, brokers said.

However, slow off-take of lint from spinning units and exporters due to sluggish cotton yarn demand in domestic and world markets restricted lint buying.

Demand continues be slack on world cotton markets in the absence of much buying from China, a major buyer of cotton and cotton yarn a year ago.

According to reports, China has further cut down cotton import quota and spinning industry is being supplied lint from domestic stocks. Consequently, most world markets including India, the US and Brazil remained under pressure.

Only needy mills were reported to have booked small lots of lint to meet their near-future demand and that too on falling prices as some ginners indulged in panic selling.

The Karachi Cotton Association (KCA) spot rates were lowered by Rs50, to Rs5,450 per maund.

The following major deals were made on ready counter: 2,000 bales Shahdadpur at Rs5,400 to Rs5,450, 2,400 bales Sanghar at Rs5,400 to Rs5,450, 1,800 bales Mirpurkhas at Rs5,400 to Rs5,450, 2,000 bales Tando Adam at Rs5,400 to Rs5,450, 2,000 bales Nawabshah at Rs5,475 to Rs5,500, 1,000 bales Khairpur at Rs5,500 to Rs5,550, 1,600 bales Burewala at Rs5,500 to Rs5,550, 800 bales Chichawatni at Rs5,500, 400 bales Maroot at Rs5,500, 1,000 bales Haroonabad at Rs5,500 to Rs5,550, and 400 bales Shaher Sultan at Rs5,525.

Published in Dawn, September 23rd , 2014