KARACHI: Cotton prices dipped on Saturday in line with global trend and renewed selling pressure from ginners. However, sustained buying from spinners and some exporters helped prices to resist downslide towards closing stages.

Floor brokers said that activity resumed on a slippery note under the influence of global downtrend where the New York cotton market recorded a fall of two US cents per lb.

The prospects of higher crop in cotton growing countries particularly US and India resulted in some panic selling which pushed prices lower in major cotton markets around the world, brokers said.

In India, the price of cotton remained under pressure on revised estimates of higher production and after staying around Rs5,000 per 356 kilograms earlier in the season has now declined to Rs4,000 and is expected to move further down to Rs3,500.

However, it was encouraging that every deal that was offered by ginners was readily picked by spinners who looked keen in replenishing their stocks at current prices, they added.

The cotton price of Sindh variety hovered between Rs5,800 and Rs6,225 per maund (around 37kg) and phutti (seed cotton) prices ranged from Rs2,700 to Rs3,150 per 40kg. The Punjab quality cotton was quoted at around Rs6,275 per maund and phutti at around Rs3,000 to Rs3,250 per 40kg.

Domestic cotton prices during the outgoing week moved lower by Rs50 to Rs75 per maund under the influence of world cotton markets.

The Karachi Cotton Association cut its spot rate by Rs50, to Rs6,000 per maund.

Major deals on the ready counter were: 1,000 bales from Tando Adam (Rs5,750 to Rs5,900), 1,800 bales Nawabshah (Rs6,000 to Rs6,025), 3,000 bales Khairpur (Rs6,175 to Rs6,200), 2,000 bales Rohri (Rs6,175 to Rs6,200), 2,000 bales Saleh Pat (Rs6,200), 1,400 bales Layyah (Rs6,200 to Rs6,270), 1,200 bales Mianwali (Rs6,250), 1,000 bales Rahimyar Khan (Rs6,250 to Rs6,275), 1,400 bales Haroonabad (Rs6,250 to Rs6,275) and 800 bales Bahawalpur (Rs6,225 to Rs6,250).

Published in Dawn October 23rd, 2016