KARACHI: The cotton prices started to stabilise on Monday on reports that the Trading Corporation of Pakistan (TCP) has entered into purchase contracts with ginners. This also helped phutti (seed cotton) prices to move slightly higher.

Floor brokers said that as reports of the TCP entering into contracts with ginners to buy around 71,400 bales reached the market, lint prices started to move higher.

Similarly, the TCP operations also helped stabilise phutti prices, with Sindh variety rising to Rs2,000-2,525 per 40kg and Punjab quality to Rs2,500-2,700. Both the qualities saw an increase of Rs200 to Rs250 per 40kg.

Though spinners and exporters were interested in buying, they were also cautious in front of the rupee gaining strength against the US dollar as it directly impacts on export parity, brokers added.

The Karachi Cotton Association (KCA) left its spot rates unchanged.

The following major deals were reported to have changed hands on ready counter: 5,000 bales Khairpur at Rs5,100 to Rs5,135, 1,000 bales upper Sindh at Rs5,100 to Rs5,135, 600 bales Burewala at Rs5,050 to Rs5,100, 1,000 bales Hasilpur at Rs5,100 to Rs5,150, 1,000 bales Gojra at Rs5,125 to Rs5,200, 800 bales Fort Abbas at Rs5,125 to Rs5,200, 2,400 bales Alipur at Rs5,175 to Rs5,200,2,000 bales Ahmedpur at Rs5,175 to Rs5,200, 1,000 bales Rajanpur at Rs5,225 to Rs5,250 and 1,200 bales Mianwali at Rs5,250.

Published in Dawn, November 11th, 2014