KARACHI: Cotton prices came under pressure after buying activity slowed down on Tuesday after past one week’s intense buying.
Trading was influenced by rising cotton prices on New York market and suddenly subsided after global prices came under pressure.
As fears of extensive damage in a couple of leading cotton growing states of the US by successive hurricanes faded away, New York cotton also came under heavy correction.
The Chinese and Indian markets also came under pressure and closed easy in line with New York cotton which recorded a fall ranging between US1.88 to 2.48 cents per lb.
As a result, the domestic market also witnessed some profit selling. Buyers preferred to change their approach and indulged in small lot deals which could meet their short term cotton demand.
According to reports, there are quality issues with phutti (seed cotton) and cotton due to high moisture content. Due to this, phutti prices have been affected adversely — coming down in the range Rs2,600 to Rs2,800 per 40kg for both Sindh and Punjab varieties. Previously, the prices stood between of Rs2,900 to Rs3,300 per 40kg.
However, it is encouraging that no pest attacks on cotton crop have been reported.
The Karachi Cotton Association (KCA) spot rates were revised downward by Rs100 to Rs6,050 per maund.
The following major deals were reported on Tuesday: 1,400 bales, Mirpurkhas, at Rs5,925 to Rs6,100; 1,200 bales, Kotri, at Rs6,000 to Rs6,050; 1,600 bales, Hyderabad, at Rs6,000 to Rs6,050; 2,000 bales, Shahdadpur, at Rs6,000 to Rs6,075; 1,800 bales, Sanghar, at Rs6,000 to Rs6,075; 2,600 bales, Tando Adam, at Rs6,050 to Rs6,100; 1,000 bales, Nawabshah, at Rs6,100; 1,800 bales, Burewala, at Rs6,200; 2,200 bales, Vehari, at Rs6,225; 1,200 bales, Alipur, at Rs6,225; 800, Mongi Bangla, at Rs6,200; 600 bales, Toba Tek Singh, at Rs6,200; and 800 bales, Haroonabad, at Rs6,200.
Published in Dawn, September 13th, 2017