KARACHI: Buying spree in quality lint kept prices firm on the cotton market on Wednesday amid dwindling stocks of the commodity.

Floor brokers said that higher cotton rates in the world markets including US and India was a major factor which is inducing strong buying from millers who want to replenish their stock with local cotton.

Ever since cotton prices in the world markets moved higher and disturbed import parity, spinners have started to build up their stocks from local supplies of quality lint, hence stabilising prices.

According to reports coming from cotton fields, very little phutti has been left behind for picking and its quality is also inferior. Therefore, market is looking forward to see fortnightly phutti arrival figures expected early next month, brokers said.

Most deals on ready counter were made above Rs5,050 per maund.

The Karachi Cotton Association (KCA) spot rates were unchanged at previous level.

Major deals finalised on ready counter were: 800 bales Haroonabad at Rs4,950 to Rs5,100, 1,000 bales Hasilpur at Rs5,000, 1,200 bales Yazman Mandi at Rs5,100, 1,400 bales Liaquatpur at Rs5,100, 600 bales Khanewal at Rs5,150, 500 bales Rahimyar Khan at Rs5,150, 1,000 bales Mianwali at Rs5,100 to Rs5,200 and 1,200 bales Bahawalpur at Rs5,200.

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, February 27th, 2015

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