KARACHI: Falling cotton prices world over are directly affecting the domestic market where lint prices on Monday remained under pressure amid slow trading.

Some millers and exporters were the only buyers to meet their near-future requirements. The underlying sentiment also remained easy.

Prices generally moved below Rs5,000 a maund with some quality premium being quoted around Rs5,100 a maund.

Brokers said the Trading Corporation of Pakistan’s (TCP) procurement drive has so far failed to support falling lint prices.

The state-owned corporation has entered into contracts for around 500,000 bales and presently carrying on sampling before taking final decision for the purchase of cotton from ginners.

Meanwhile, flow of phutti from cotton fields into ginneries is still high which is putting pressure on lint prices amid slow off-take, brokers added.

Following major deals were finalised on the ready counter: 800 bales Khairpur done at Rs4,675, 800 bales Burewala done at Rs4,750 to Rs4,800, 800 bales Faqirwala done at Rs4,925, 2,000 bales Bahawalpur done at Rs5,000, 2,000 bales Rahimyar Khan done at Rs5,000 to Rs5,100, 1,000 bales Sadiqabad done at Rs5,025 to Rs5,050, 1,000 bales Yazman Mandi done at Rs5,000 to Rs5,075, 2,000 bales Noorpur done at Rs5,075, 1,000 bales Layyah done at Rs5,075, 2,000 bales Rajanpur done at Rs5,100, 1,000 bales Mianwali done at Rs5,100 and 600 bales Jatoi done at Rs5,000.

The following are Monday’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, November 25th , 2014