KARACHI: Cotton prices were steady on Tuesday on the open market amid revival of buying interest. However, official spot rates were revised downward.

However, ginners were reluctant to dispose of their stocks in the hope of getting higher prices in the future.

Cotton analysts said dwindling stocks, especially of quality cotton, were keeping both sides under extreme pressure.

The spinning mills are keen to replenish their stocks ahead of Ramazan when demand for all sorts of clothing would rise, but ginners with limited stocks want to get higher price. High asking price was preventing spinners from entering into big deals, brokers said.

However, the Karachi Cotton Association (KCA) cut its spot rates by Rs50, to Rs5,600 per maund.

Major deals on the ready counter: 700 bales from Hasilpur done at Rs5,200 to Rs5,800, 1,000 bales Layyah at Rs5,300 to Rs5,650, 400 bales Chishtian at Rs5,500, 2,500 bales Alipur at Rs5,600 to Rs5,650, 200 bales Dera Ghazi Khan at Rs5,700 and 200 bales Khanpur at Rs5,800.

The world cotton markets were also on a rising trend where Indian and Chinese markets closed firm while New York’s cotton market recorded fresh gains for all the future contracts.

Published in Dawn, May 4th, 2016