KARACHI: Buying spree on the cotton market entered into the second day in a row on Thursday, with some leading spinners being in the lead.

Floor brokers said the upcoming Ashura closure and higher arrivals of phutti (seed cotton) were the main factors influencing the cotton economy.

The millers having short supply of lint are replenishing their stocks to meet their need during closure while others were busy in hedging their future stocks, brokers added.

While some growers believe that they would be getting better price once the Trading Corporation of Pakistan (TCP) starts cotton procurement, others think that depressed cotton prices world over would not allow such impact.

However, strong demand from spinners slightly pushed cotton prices higher in ready deals while the Karachi Cotton Association (KCA) also raised its spot rates by Rs50, to Rs5,150 per maund.

There were rumours in the market that the TCP has announced pre-procurement lint price at Rs6,864 per maund.

This created uncertainty because the price is much higher than the prevailing local as well as world cotton rates, brokers said.

Meanwhile, the Pakistan Cotton Ginners Association (PCGA) has advised all the stakeholders not to panic and keep their trading activity without being influenced any outside factors.

The world cotton markets, however, came under correction where New York cotton market managed to recover part of the recent losses.

The following major deals were reported to have changed hands on ready counter: 2,000 bales Khairpur at Rs5,150 to Rs5,200, 2,500 bales upper Sindh at Rs5,150 to Rs5,200, 600 bales Burewala at Rs5,200, 1,600 bales Ahmedpur at Rs5,200 to Rs5,250, 600 bales Chichawatni at Rs5,225 to Rs5,250, 1,400 bales Khanewal at Rs5,250 to Rs5,275, 1,000 bales Layyah at Rs5,275, 1,000 bales Rajanpur at Rs5,300 and 2,000 bales Mianwali at Rs5,300.

The following are Thursday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/16” micronair value between 3.8 to 4.9 NCL.

Published in Dawn, October 31st, 2014