KARACHI: Cotton prices rebounded on Thursday which encouraged sellers to enter into big deals. The sudden fall in world cotton prices the previous day coupled with higher bid offerings from spinners resulted in moderate to active trading.

Ginners, who were earlier reluctant to dispose of their stocks, were seen readily entering into deals on higher bids coming from leading spinners, brokers said. Most deals were finalised at seasonal high rates.

According to market reports, ginners are currently holding little stock of unsold cotton. Phutti (seed cotton) in Sindh cotton fields have been exhausted and in Punjab the crop was also at its fag end.

The Karachi Cotton Association raised its spot rates in line with ready counter deals where prices normally stood high. Major deals on the ready counter were: 580 bales from Hyderabad at Rs6,450, 1,800 bales from Dharki at Rs7,100, 1,300 bales from Khanewal at Rs6,925 to Rs7,050, 200 bales from Shujabad at Rs7,000, 3,000 bales from Rahimyar Khan at Rs7,000 to Rs7,050 and 400 bales from Faqirwali at Rs7,150.

Meanwhile, the New York cotton market recouped its previous day’s losses while Indian and Chinese markets remained mixed to steady.

Published in Dawn, March 10th, 2017