KARACHI: The cotton market on Friday witnessed panic selling from ginners which pushed prices lower. Higher arrival of phutti (seed cotton) along with a downward trend in world’s leading cotton markets influenced trading.

Lower cotton output estimate of 12.6 million bales as against the estimated production of 14.04m bales, shared a day earlier by the Cotton Crop Assessment Committee, should have pushed cotton prices higher but on the contrary these came under pressure.

Late in the evening, selling pressure intensified and pushed prices even lower at Rs6,200 per maund – strongly indicating that ginners have indulged in panic selling.

Phutti prices also declined in the range of Rs2,800 to Rs3,000 form earlier rates of Rs3,000 to Rs3,300 per maund.

Almost all the leading cotton markets closed easy. New York cotton took the lead, down US three cents per lb.

Sindh variety cotton slightly moved higher on ready counter while Punjab cotton declined by Rs300 per maund.

The Karachi Cotton Association (KCA) spot rates were revised downward by Rs50 to Rs6,400 per maund.

The following deals were reported on Friday: 2,000 bales, Hyderabad, at Rs6,375 to Rs6,450; 1,000 bales, Mirpurkhas, at Rs6,375 to Rs6,425; 2,000 bales, Kotri, at Rs6,400 to Rs6,450; 1,000 bales, Winder, at Rs6,400 to Rs6,475; 2,400 bales, Sanghar, at Rs6,400 to Rs6,475; 3,000 bales, Tando Adam, at Rs6,400 to Rs6,475; 3,000 bales, Shahdadpur, at Rs6,400 to Rs6,475; 800 bales, Chichawatni, at Rs6,625 to Rs6,650; 800 bales, Khanewal, at Rs6,660 toRs6,675; 500 bales, Vehari, at Rs6,675; and 400 bales, Gojra, at Rs6,690.

Published in Dawn, August 12th, 2017