KARACHI: Cotton prices came crashing down on Friday due to panic selling from ginners holding huge stocks.

The Karachi Cotton Association revised the spot rates downwards by Rs150 to Rs5,950 per maund.

Market experts noted that it was worrisome for cotton prices to go below the Rs6,000 mark on ready trading.

The current flow of phutti (seed cotton) has forced many ginning units in Punjab to stop lifting it from Sindh — as was being done earlier in the season. Above all, global factors also influenced trading and cotton prices.

There was sudden surge in demand for Punjab variety cotton which came down below Rs6,000 from Rs6,700 per maund recorded early in the season.

Under the current scenario, growers are going to suffer heavily because prices of phutti came down in the range of Rs2,700 to Rs2,800 per 40kg compared to earlier prices of Rs3,000-3,300 per 40kg.

For the first time during the current season, some exporters also entered the market. Sources said around 70,000 bales were booked for exports. All the leading world cotton markets closed easy on Friday due to depressed demand for cotton. The New York and Chinese markets closed easy whereas the Indian market also came under pressure.

The following deals were reported on Friday: 3,000 bales, Shahdadpur, at Rs5,800 to Rs5,975; 1,000 bales, Khipro, at Rs5,800 to Rs5,900; 2,600 bales, Tando Adam, at Rs5,885 to Rs5,975; 2,000 bales, Mirpurkhas done at Rs5885 to Rs5975, 2000 bales, Sanghar, at Rs5,900 to Rs5,950; 1,000 bales, Jhole, at Rs5,900 to Rs5,950; 1,800 bales, Kotri, at Rs5,950; 2,000 bales, Hyderabad, at Rs5,950; 3,600 bales, Burewala, at Rs6,000 to Rs6,050; 1,200 bales, Vehari, at Rs6,000 to Rs6,050; 1,400 bales, Chichawatni, at Rs6,000 to Rs6,050; 1,000 bales, Khanewal, at Rs6,000 to Rs6,100; 1,400 bales, Haroonabad, at Rs6,000 to Rs6,060; 1,400 bales, Mian Channu, at Rs6,000 to Rs6,050; and 600 bales, Pir Mehal, at Rs6,000.

Published in Dawn, August 19th, 2017