KARACHI: Trading activity on the cotton market remained brisk on Saturday as buyers went ahead with major deals to build stocks at prevailing prices. The undertone was strong and outlook remained bright
Spinners were at the forefront of the buying spree to meet their near future demand. As a result prices slightly moved higher on sustained demand.
Internationally, reports of Hurricane Irma hitting Florida once again pushed New York cotton market prices higher. The US is already struggling with the devastation caused by Hurricane Harvey in Texas, a major cotton growing state.
Consequently, a new high level was recorded by New York cotton at US75.59 cents per lb. This impacted local market prices which moved higher over the overnight level on ready trading. However, spot rates of the Karachi Cotton Association remained unchanged.
During the week official spot rates were revised upward by Rs200 per maund to Rs6,100 per maund. Similarly, prices on ready trading also registered gain to Rs6,000 to Rs6,200 per maund for Sindh quality while Punjab prices stood higher at Rs6,200 to Rs6,325 per maund. Phutti (seed cotton) prices also moved higher from 2,600 to Rs2,900 per 40kg.
However, higher arrival of phutti in coming days is expected to keep prices firm. Strong demand for yarn from local denim manufacturers and China is reckoned to be a stabilising factor.
There are reports in the market that the Economic Coordination Committee of the Cabinet is likely to approve 4 per cent rebate for textile exports in its next meeting. This has induced a positive sentiment for cotton trade which helped prices stay firm.
Meanwhile, the condition of cotton crop is being reported as satisfactory so far. No pest attack has been reported, as had been feared following rains in both Sindh and Punjab last month.
The following major deals were reported to have changed hands on ready counter on Saturday: 1,000 bales, Mirpurkhas, at Rs6,000 to Rs6,100; 1,000 bales, Hyderabad, at Rs6,050 to Rs6,100; 1,000 bales, Kotri, at Rs6,050 to Rs6,100; 1,400 bales, Tando Adam, at Rs6,050 to Rs6,100; 3,000 bales, Shahdadpur, at Rs6,050 to Rs6,100; 3,000 bales, Nawabshah, at Rs6,100 to Rs6,200; 800 bales, Khairpur, at Rs6,150 to Rs6,200; 1,400 bales, Khanewal, at Rs6,300 to Rs6,325; 600 bales, Haroonabad, at Rs6,300; 600 bales, Vehari, at Rs6,300; 600 bales, Burewala, at Rs6,300; and 400 bales, Chichawatni, at Rs6,300.
Published in Dawn, September 10th, 2017
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