KARACHI: Revival of buying interest at the lower level helped cotton prices on Wednesday from reeling further down. Some mills and exporters moved in to replenish their stocks to meet their immediate future needs.

The domestic market is under pressure due mainly to lower commodity prices world over, including those of cotton, brokers said. Above all, most cotton-producing countries are harvesting bumper crop this season.

As a result, prices all over the world continue to stay under pressure, with New York cotton being quoted throughout the season at around 60 US cents per lb and below.

The Cotton Corporation of India (CCI) has also floated tenders to sell huge quantity of Indian cotton on the world market.

Meanwhile, ginners are complaining that they were facing liquidity crunch as the Trading Corporation of Pakistan (TCP) was not paying their dues against the cotton it purchased.

The New York cotton market moved modestly higher for all the futures. The Karachi Cotton Association (KCA) raised its spot rates by Rs50 to Rs4,700 per maund.

Major deals finalised on ready counter were: 400 bales Shahdadpur at Rs4,000, 400 bales Hingorja at Rs4,500, 400 bales Haroonabad at Rs4,600, 525 bales Bahawalpur at Rs4,600, 804 bales Lodhran at Rs4,700, 1,000 bales Rajanpur at Rs4,850 to Rs4,900, 2,000 bales Rahimyar Khan at Rs4,850 to Rs4,950 and 1,000 bales Mianwali at Rs4,900.

The following are Wednesday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/16” micronair value between 3.8 to 4.9 NCL.

Published in Dawn, January 29th, 2015

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