KARACHI: Steady conditions prevailed on the cotton market on Saturday where buyers remained active in replenishing their stocks.

Rupee’s depreciation against the US dollar due to political impasse also encouraged exporters to book large stocks which kept prices on the higher side.

Phutti (seed cotton) arrivals remained slow during the week which created imbalance between demand and supply, brokers said.

According to the Met Office, next week will witness spell of rains in Sindh and Punjab, particularly in the cotton growing areas, and this will be helpful for the crop. However, it may once again slow down phutti arrivals.

Cotton analysts believe that once political stalemate is over, the rupee is expected to strengthen once again and cotton prices will come under pressure.

The world cotton markets generally remained firm where New York cotton, after recording all-around gains the previous day, came under correction. But maturing October 2014 contract ended with modest rise.

The Karachi Cotton Association (KCA) spot rates were steady at previous level.

The following major deals were reported to have changed hands on ready counter: 1,200 bales Tando Adam at Rs5,650, 1,600 bales Sanghar at Rs5,600 to Rs5,625, 1,600 bales Mirpurkhas at Rs5,600 to Rs5,650, 2,000 bales Vehari at Rs5,740 to Rs5,750, 1,000 bales Haroonabad at Rs5,750 to Rs5,800, 800 bales Mongi Bangla at Rs5,750, 200 bales Kabbirwala at Rs5,760.

The following are Saturday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Published in Dawn, August 31th, 2014