KARACHI: Revival of buying interest helped prices to stabilise on the cotton market where many mills, induced by further cut in petroleum prices next month, moved in to replenish their stocks on Friday.

The textile industry hopes that cheaper oil would help reduce power outages and may also reduce consumption pressure on gas which is in short supply to industry.

Market analyst Naseem Usman said the report of US Agriculture Department expected early next week, which is likely to show higher cotton export figures, has also influenced the market.

Besides, tenders issued for export by the Cotton Corporation of India (CCI) has fixed prices on the higher side, making it somewhat difficult for the Indian cotton finding its way into Pakistani market, he added.

However, the cotton yarn market continues to be sluggish because of little demand from domestic value-added textile sector and exports.

The New York cotton for third straight session moved higher where all future contracts made fresh modest gains.

The Karachi Cotton Association (KCA) left its spot rates unchanged.

Major deals finalised on ready counter were: 200 bales Sanghar at Rs4,000, 400 bales Shahdadpur at Rs4,000, 200 bales Kandyro at Rs4,300, 200 bales Kotri at Rs4,500, 200 bales Kotri at Rs4,500, 200 bales Hyderabad at Rs4,500, 400 bales Faqirwali at Rs4,600, 600 bales Haroonabad at Rs4,600 to Rs4,675, 400 bales Fort Abbas at Rs4675, 600 bales Alipur at Rs4,800 to Rs4,900, 1,000 bales Rahinyar Khan at Rs4,900, 400 bales Mianwali at Rs4,975.

Published in Dawn January 31st, 2015

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