KARACHI: Sustained buying helped the cotton market on Monday to stay firm amid instances of dips in prices which remained restricted in nature and caused very little impact on overall price structure.

Floor brokers said that spinners have finally realised that their viability under domestic conditions do not allow them to buy cotton on higher prices even if world markets take bullish trend.

While global cotton markets generally moved higher and recovered part of their last week’s losses, the domestic market shed around Rs100 per maund (around 37 kilograms) in ready trading.

However, the activity was brisk as spinners were keen to replenish their stocks at current prices.

“Demand for cotton yarn continues to be sluggish and the textile industry in general is passing through a difficult period,” brokers said.

Cotton analyst Naseem Usman said spinners believed that their viability was ensured when cotton prices ranged between Rs5,800 and Rs6,200 per maund.

As the flow of phutti from cotton fields into ginneries in Punjab is gaining momentum, spinners are also stepping up buying to meet their seasonal demand, brokers said.

The Karachi Cotton Association lowered its spot rate by Rs100, to Rs6,050 per maund.

Major deals on the ready counter were: 1,800 bales from Mirpurkhas (Rs5,950 to Rs6,000), 1,000 bales Hyderabad (Rs6,000 to Rs6,050), 3,000 bales Shahdadpur (Rs6,000 to Rs6,100), 2,600 bales Tando Adam (Rs6,000 to Rs6,100), 2,000 bales Sanghar (Rs6,000 to Rs6,100), 1,000 bales Moro (Rs6,100 to Rs6,150), 2,600 bales Nawabshah (Rs6,150), 6,000 bales Khairpur (Rs6,150 to Rs6,250), 1,000 bales Burewala (Rs6,200 to Rs6,225), 1,200 bales Vehari (Rs6,200 to Rs6,250), 800 bales Chichawatni (Rs6,200 to Rs6,250), 1,100 bales Hasilpur (Rs6,200 to Rs6,275), 200 bales Mianwali (Rs6,300), 200 bales Layyah (Rs6,275) and 200 bales Kassowal (Rs6,250).

Published in Dawn, September 27th, 2016