KARACHI: Cotton prices came under pressure in line with world markets on Thursday. However, activity remained brisk on strong demand from spinners who replenished their stocks at current prices.

Floor brokers said that as most leading world cotton markets were easy on slow demand under the lead of New York cotton market, the domestic market also came under physiological impact.

Reports circulating in the trading ring suggested that Faisalabad cotton yarn market, which is the country’s largest yarn market, was experiencing slow-off take of yarn from the value-added sector.

Cotton prices fell as a result despite the fact that spinners remained in the forefront of the buying spree and kept booking big-lot deals throughout the session as the flow of quality phutti (seed cotton) is in full bloom.

They further said that long closure ahead of Chinese markets because of a festival was another factor which slowed down trading activity in cotton as well as yarn markets.

The Karachi Cotton Association cut its spot rate by Rs50, to Rs6,050 per maund (around 37 kilograms).

Major deals on the ready counter were: 1,800 bales from Tando Adam (Rs5,950 to Rs6,125), 1,000 bales Sanghar (Rs6,000 to Rs6,050), 2,200 bales Shahdadpur (Rs6,000 to Rs6,125), 2,200 bales Nawabshah (Rs6,160 to Rs6,200), 1,000 bales Moro (Rs6,150 to Rs6,200), 1,200 bales Saleh Pat (Rs6,250 to Rs6,280), 1,200 bales Rohri (Rs6,250 to Rs6,280), 4,000 bales Khairpur (Rs6,250 to Rs6,300), 2,000 bales Mianwali (Rs6,250 to Rs6,300), 1,000 bales Faqirwali (Rs6,250 to Rs6,300), 1,000 bales Chishtian (Rs6,250 to Rs6,300), 1,100 bales Burewala (Rs6,250 to Rs6,300) and 1,000 bales Rajanpur (Rs6,300).

Published in Dawn, September 30th, 2016