KARACHI: There was a sudden drop in trading acti­vity on the cotton market on Saturday, with prices coming down owing to lack of buying interest from spinners.

Though it could not be ascertained as to why buyers pulled out in such a big way, many leading spinners are reportedly keen to import cotton to meet demand.

The ginners’ report on cotton production also did not come up with any negative development. The report noted that flow of phutti (seed cotton) from fields into ginning units last fortnight was slower due to heavy smog and fog in Punjab.

The textile industry has already entered into import contracts worth 1.6 million bales from US, Brazil, Central Asian Countries and West Africa. However, spinners are seeking permission from the government to allow them to import cotton from neighboring country India.

The All Pakistan Textile Mills Association members in the past imported cotton up to 2.8m bales per annum after country’s crops failed and remained at around 10m bales for last two successive seasons.

Overall decline in cotton prices stood between Rs300-400 per maund during the week.

Similarly, phutti prices also came under pressure and were quoted in the range of Rs2,600-3,200 per 40kg for Sindh variety and Rs2,700-3,300 for Punjab quality per 40kg.

The world leading cotton markets generally remained firm. New York cotton for the third consecutive session moved higher for all future contracts. Indian and Chinese cotton also closed firm.

The Karachi Cotton Asso­cia­­tion (KCA) spot rates were firm at overnight level.

The following deals were reported to have changed hands on ready counter: 400 bales, station Shahdadpur, at Rs6,100; 400 bales, Sanghar, at Rs6,000; 1,400 bales, Saleh Pat, at Rs6,400 to Rs6,500; 1,600 bales, Khairpur, at Rs6,350 to Rs6,400; 400 bales, Faqirwali, at Rs6,375; 600 bales, Haroonabad, at Rs6,375; 200 bales, Sadiqabad, at Rs6,700; and 400 bales, Fort Abbas, at Rs6,425.

Published in Dawn, November 19th, 2017