KARACHI: The cotton market remained steady on sustained buying for quality cotton from spinners and some exporters. The undertone was firm and outlook optimistic.

Dealers said that spinners focused their buying activity around quality cotton and there were rumours that unannounced ban on cotton imports from India would continue to cause panic among spinners.

Consequently, there were intense buying bouts from millers who tried their utmost to build up their stocks with the quality cotton which was still easily available. However, fear of shortage of quality cotton after the first picking comes to an end was causing panic buying, brokers said.

Due to high demand for cotton, phutti (seed cotton) prices also moved higher for both Punjab and Sindh varieties. The Punjab quality was being quoted at Rs3,550 and Sindh at Rs3,350 per 40 kilograms.

However, brokers said that many buying orders were rejected by ginners as they were not holding sufficient stocks of quality cotton. This was a strong indicator that quality cotton stocks were diminishing and new arrivals of phutti were of second grade, they added.

The Karachi Cotton Association cut its spot rates by Rs50, to Rs6,250 per maund (around 37kg).

Major deals on the ready counter were: 1,200 bales from Rohri done at Rs6,200 to Rs6,250, 1,000 bales Dharki (Rs6,400 to Rs6,500), 2,400 bales Mianwali (Rs5,950 to Rs5,975), 1,600 bales Alipur (Rs6,250), 1,400 bales Chishtian (Rs6,300 to Rs6,350), 1,600 bales Haroonabad (Rs6,300 to Rs6,350), 1,000 bales Fort Abbas (Rs6,400), 1,400 bales Faqirwali (Rs6,400), 1,800 bales Ahmedpur (Rs6,400), 1,800 bales Yazman Mandi (Rs6,400 to Rs6,500), 2,200 bales Khanpur (Rs6,400 to Rs6,500), 3,400 bales Sadiqabad (Rs6,400 to Rs6,500), and 4,600 bales Rahimyar Khan (Rs6,400 to Rs6,500).

Published in Dawn, November 30th, 2016