KARACHI: Steady conditions prevailed on the cotton market on Saturday as there were no new developments which could have influenced trading activity or price structure.
Strong demand emerging from needy spinners generated moderate to active trading activity with price line staying firm. The ginners who had been asking higher prices seem to have changed their strategy.
Reports of improved flow of irrigation water and recent rains in Sindh and Punjab have revived hopes for normal cotton sowing. There is greater possibility of next season’s cotton crop hitting the market in June. As a result, ginners are now in a hurry to dispose unsold stocks. “With the arrival of new crop in June, old cotton stocks would be difficult to sell,” brokers said.
It was interesting to note that most of the deals transpired on ready counter were of Punjab variety and no transaction was made in Sindh quality cotton. Most of the deals were finalised at overnight rates which indicated that ginners are no more asking for higher price.
The Karachi Cotton Association (KCA) spot rates were firm at overnight level.
The following deals were reported to have changed hands on ready counter: 400 bales, station Rahimyar Khan, at Rs7,500; 1,100 bales, Vehari, at Rs6,600; 600 bales, Layyah, at Rs6,900; 200 bales, Yazman, at Rs6,650; 400 bales, Alipur, at Rs6,650; 800 bales, Taunsa, at Rs6,700; and 600 bales, Fort Abbas, at Rs6,375.
Published in Dawn, April 15th, 2018
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