KARACHI: Buying spree continued on the cotton market on Saturday as spinners feared costlier imports following severe damage to Indian cotton.

As the estimate of crop size keeps declining, the issue of quality cotton availability has been aggravating.

Cotton prices generally remained on the higher side, mostly due to lint quality. However, spinners now feel that they have to largely depend on local sources to meet their demands and willingly paid premium. However, small spinners contended with second grade lint but still happily replenished their stocks.

It was interesting that New York cotton — which rose to above US 75 cents per lb on receiving reports of extensive damage to Indian cotton — suddenly came under profit selling and finished lower for all future contracts.

“A true picture of the cotton economy will appear by the end of this month as real estimate of local crop size and situation in India would be available. This will clear up the import factor as well demand of local industry,” said Naseem Usman a cotton analyst.

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

The following major deals were reported to have changed hands on ready counter: 4,000 bales, Daharki, at Rs7,000; 2,400 bales, Ghotki, at Rs6,900 to Rs7,000; 1,200 bales, Khairpur, at Rs6,450 to Rs6,500; 1,000 bales, Rohri, at Rs6,500 to Rs6,600; 6,800 bales, Rahimyar Khan, at Rs6,900 to Rs7,000; 6,500 bales, Khanpur, at Rs6,950; 2,400 bales, Sadiqabad, at Rs6,900 to Rs7,000; 1,400 bales, Kot Sabzal, at Rs6,950 to Rs7,000; 4,200 bales, Haroonabad, at Rs6,400 to Rs6,500; 1,000 bales, Marrot, at Rs6,500; 1,400 bales, Yazman, at Rs6,475; and 1,800 bales, Chishtian, at Rs6,425.

Published in Dawn, December 10th, 2017