KARACHI: Trading activity improved on the cotton market on Tuesday amid sustained demand from spinners, but quality constraints inhibited the volume to expand.

The current spell of rains has subsided in many parts of the country and helped imp­rove the flow of phutti from cotton fields into ginneries. Still in many areas, rain is still hindering the flow.

However, the forecast of more rains is disturbing for growers. So far, the cotton crop has remained safe and no damage has been reported.

According to reports, some ginning units have started operations in Punjab which is going to improve the availability of quality cotton. It is also encouraging that there is better off-take of cotton yarn and spinners are eager to build up their stocks. However, quality constraint kept spinners sceptical and cautious.

Phutti prices, meanwhile, remained under pressure and were quoted between Rs2,400 to Rs3,000 per 40 kg for Sindh variety and Rs2,900 to Rs3,250 for Punjab quality.

Leading international cotton markets were steady on encouraging reports of higher cotton production and consumption this year.

The Karachi Cotton Association (KCA) kept its spot rates at overnight level.

The following deals were reported to have changed hands on the ready counter: 1,000 bales, Shahdadpur, at Rs6,275 to Rs6,350; 1,000 bales, Tando Adam, at Rs6,325 to Rs6,350; 400 bales, Sinjoro, at Rs6,350; 800 bales, Sanghar, at Rs6,350; 200 bales, Bure­wala, at Rs6,500; 400 bales, Chichawatni, at Rs6,550; and 400 bales, Vehari, at Rs6,550.

Published in Dawn, July 26th, 2017