KARACHI: Strong demand for quality cotton pushed prices higher on Saturday where most of the buying originated from Punjab spinners. The undertone remained firm and outlook optimistic.

Floor brokers said that currently around 70 per cent demand for cotton was originating from Punjab-based spinners and only 30pc by the Sindh industry.

However, world cotton markets once again gave mixed trend with New York and India coming under renewed selling pressure. The Chinese market, on the other hand, remained firm, brokers said.

The New York market moved higher early this week on US Agriculture Department report of higher cotton exporters. But towards weekend it retreated as the US dollar was reported to have come under pressure.

Meanwhile, phutti arrivals continue to gradually improve and the quality of cotton has also improved with moisture contents of recent rains drying out. This encouraged spinners to get large deals finalised, brokers added.

The new estimates putting better cotton yield in both Pakistan and India have also induced sentiment because this would help these countries to get higher orders for exports. The lesser acreage coming under cotton sowing this season was expected to be off-set by higher yield, cotton analysts said.

The Karachi Cotton Association raised its spot rate by Rs50 to Rs6,550 per maund (around 37 kilograms).

Major deals on the ready counter were: 2,000 bales from Sanghar (Rs6,700 to Rs6,800), 2,000 bales Shahdadpur (Rs6,700 to Rs6,800), 2,000 bales Mirpurkhas (Rs6,750 to Rs6,800), 4,800 bales Tando Adam (Rs6,750 to Rs6,800), 400 bales Haroonabad (Rs6,750), 400 bales Gojra (Rs6,750), 800 bales Jhole (Rs6,650 to Rs6,800), 800 bales Hyderabad (Rs6,700 to Rs6,750), 800 bales Maqsoodo (Rs6,700 to Rs6,750), and 400 bales Moro (Rs6,700).

Published in Dawn, August 21st, 2016