KARACHI: Tight phutti (seed cotton) supply continues to push lint prices higher on the cotton market where spinners and some exporters on Tuesday strived to cover their position.
Floor brokers expressed their concern over rains in the cotton-growing belts of Punjab which they fear may affect lint quality.
Meanwhile, growers continue to hold back their phutti which has stabilised lint prices. However, brokers said that even ginners have slowed down the release of their lint stocks in the hope to get better price once the Trading Corporation of Pakistan (TCP) starts cotton procurement.
Though the cotton crop was largely remained safe from the recent floods, analysts fear the current wet spell could be harmful, if not totally damaging, for the crop.
The ban on cotton imports by China continues to have dampening impact on world cotton markets where New York cotton managed to partly recover recent losses. Consequently, all the future contracts ended with modest gains.
The Karachi Cotton Association (KCA) spot rates were steady at previous level.
The following major deals changed hands on ready counter: 1,000 bales Nawabshah at Rs5,200, 2,400 bales Khairpur at Rs5,325 to Rs5,350, 1,600 bales upper Sindh at Rs5,350, 1,400 bales Khanewal at Rs5,300 to Rs5,400, 1,000 bales Haroonabad at Rs5,350, 2,000 bales Rajanpur at Rs5,375 to Rs5,400, 1,000 bales Burewala at Rs5,300 to Rs5,350 and 1,200 bales Layyah at Rs5,375.
Published in Dawn, October 15th , 2014
