KARACHI: Improved arrivals of phutti (seed cotton) helped prices stabilise on the cotton market on Friday.

Many ginning factories in Sindh managed to step up their operation on higher arrivals. Moreover, phutti flow from cotton fields of Punjab has also started picking up, putting prices under pressure. The prices were being quoted lower by Rs25-50 per 40kg.

The other factor which influenced phutti prices was a decline in cotton seed oil cake which was reported to have closed lower by Rs100, to Rs1,150 per maund.

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

The following major deals were finalised on ready counter: 2000 bales from Sanghar done at Rs4700 to Rs4750, 1400 bales Mirpurkhas at Rs4750, 1400 bales Tando Adam at Rs4750 to Rs4800, 1400 bales Shahdadpur at Rs4750 to Rs4800, 600 bales Hyderabad at Rs4750, 1000 bales Burewala at Rs4700 to Rs4750, 400 bales Jhang at Rs4700 to Rs4750, 400 bales Chichawatni at Rs4700 to Rs4750, 400 bales Sahiwal at Rs4725, 400 bales Arifwala at Rs4725, 400 bales Kabirwala at Rs4750, 400 bales Mian Channu at Rs4750.

On world cotton front, the US Agriculture Department report of cotton production was encouraging. The New York cotton market regained overnight losses, with all the future contracts closing with modest gains.

Published in Dawn, August 22nd, 2015

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