KARACHI: Cotton trading was brisk on Saturday amid sustained demand from spinners. However, prices slightly came under pressure owing to intervention of the state-owned Trading Corpo­ration of Pakistan (TCP).

Floor brokers said spinners, who have yet to meet their seasonal demand, are perturbed at shortage of quality lint and fast-depleting cotton stocks with ginners.

The delay in arrival of next crop was another cause of panic because short crop has already put many spinners in difficult position since they could not import cotton due to liquidity problem, brokers said.

Sowing for new crop in lower Sindh was going on at full swing, while sowing has also started in lower Punjab and the areas where wheat harvesting was over.

Due to sustained demand quality, cotton prices rose Rs200 to Rs250 per maund during the week to touch re­­cord seasonal high of Rs6,000 per maund on ready counter.

The Karachi Cotton Asso­ciation also raised its spot rates by Rs100, to Rs5,650 per maund during the week. The Sindh variety cotton during the week was quoted in the range of Rs4,800 to Rs6,000 per maund and Punjab quality between Rs5,200 and Rs6,000.

On Saturday, the KCA increased its spot rates by Rs50, to Rs5,650 per maund. Major deals on ready counter were: 3,000 bales from Ghotki (Rs6,000), 600 bales Hasilpur (Rs5,200), 600 bales Dera Ghazi Khan (Rs5,500), 200 bales Maroot (Rs5,500), 200 bales Rahim­yar Khan (Rs5,950) and 1,300 bales Khanpur (Rs5,995).

The world cotton markets renewed their upward drive as buyers rushed back to make short-covering.

The New York cotton finished higher for all the future contracts.

Published in Dawn, May 1st, 2016