KARACHI: The cotton market on Saturday remained on a slippery path as prices moved lower amid sustained selling pressure.

However, towards closing stages some stability was noted as many ginners withdrew to the sidelines after overselling.

A crisis-like situation has prevailed on the market as prices touched rock bottom due to panic selling from ginners with huge stocks of phutti (seed cotton).

The sudden change in weather helped cotton crop to mature early, improving phutti arrival particularly in Punjab which earlier had a disturbed demand and supply equilibrium. However, the high supply has put pressure on cotton prices.

During the outgoing week, cotton prices came crashing down between Rs600 to Rs700 per maund on panic selling from ginners and phutti rates also tumbled down in the range of Rs300 to Rs400 per 40 kg.

The rapidly falling cotton prices attracted buying from spinners who availed the opportunity, resulting in brisk activity throughout the week.

Due to attractive prices, many exporters also entered the market and booked substantial quantity of cotton. According to market reports, a leading international cotton dealer was also seen active.

However, reports suggested that whitefly and pest attack have been noted in some cotton growing areas in Punjab. The government and plant department has been suggested to take timely measures in the regard.

Meanwhile, sources said that talks are under way between the Karachi Cotton Association (KCA) and Pakistan Commodity Exchange for opening of hedge trading in cotton at KCA.

On Saturday, world’s leading cotton markets also remained under pressure, with New York cotton closing easy by up to 4 cents from 71 to 67 per lb. The Chinese and Indian cotton also remained easy with former releasing huge stocks in the world market.

The KCA left its spot rates unchanged at overnight level.

The following deals were reported on Saturday: 1,600 bales, Tando Adam, at Rs5,800 to Rs5,950; 2,400 bales, Shahdadpur, at Rs5,900 to Rs5,950; 1,000 bales, Mirpurkhas, at Rs5,900 to Rs5,950; 1,600 bales, Hyderabad, at Rs5,950; 1,000 bales, Sanghar, at Rs5,950; 1,000 bales, Haroonabad, at Rs6,050; 600 bales, Chicha­watni, at Rs6,050; 800 bales, Sahiwal, at Rs6,050; 800 bales, Khanewal, at Rs6,050; 600 bales, Duniyapur, at Rs6,050; and 800 bales, Burewala, at Rs6,050.

Published in Dawn, August 20th, 2017