KARACHI: Buyers remained in the forefront on Thursday, pushing up cotton prices on ready deals as well as official spot rates.

Higher demand originating from leading spinners and some exporters induced positive sentiment.

Buying spree was triggered by reports that the current heat wave in Sindh and Punjab could adversely affect growth of cotton plants. Moreover, pace of cotton picking has also slowed down due to excessive heat.

Consequently, spinners rushed to replenish their stocks which pushed prices up by around Rs50 per maund – both in ready trading and official spot rates fixed for the day by the Karachi Cotton Association.

Due to strong demand for cotton, phutti (seed cotton) prices also moved higher for the Sindh and Punjab varieties, with the former quoted in the range of Rs2,800-3,000 and later between Rs2,800-3,050 per 40kg.

On the global front, cotton prices in India came crashing down after reports that around 40 million bales would be produced this year. This caused panic and sellers rushed to dispose off their stocks which pulled down cotton prices.

Rains in Indian Gujrat, where late cotton sowing is still going on, is a positive development to boost cotton production. The New York and Chinese cotton prices remained steady on sustained demand and with no adverse development taking place to impact trading.

The following major deals were reported to have changed hands on ready counter: 1,600 bales, Tando Adam, at Rs5,875 to Rs6,000; 1,400 bales, Shahdadpur, at Rs6,000; 1,200 bales, Rohri, at Rs6,150 to Rs6,200; 1,200 bales, Saleh Pat, at Rs6,150 to Rs6,200; 5,000 bales, Khairpur, at Rs6,200; 1,000 bales, Haroonabad, at Rs6,175 to Rs6,200; 600 bales, Layyah, at Rs6,175 to Rs6,240; 600 bales, Kabirwala, at Rs6,200; 800 bales, Burewala, at Rs6,200; 600 bales, Khanewal, at Rs6,200; 600 bales, Ahmedpur, at Rs6,250; and 400 bales, Rajanpur, at Rs6,250.

Published in Dawn, September 22nd, 2017