KARACHI: Fairly brisk activity was noted on the cotton market on Friday as strong demand from needy spinners pushed cotton prices up.

Spinners were able to grab some big deals of quality lint.

Dwindling cotton stocks as the season nears its end are causing small spinners to panic as they have been unable to meet their seasonal demand.

Soaring world cotton prices also influenced the domestic market. According to the latest US Department of Agriculture report, exports during the last week increased by 31 per cent, pushing cotton prices up in New York.

The Indian cotton prices also jumped up by Rs200 to Rs41,200 for Shankar variety and Rs38,300 for Mech-1 quality. Chinese cotton was steady. A leading ginner Mian Mahmood Ahmed complained that the Karachi Cotton Association (KCA) spot rates never reflected correct rates and created distortion in the market. He suggested that KCA spot rates should be realistic in order to meet the demand of stakeholders.

He further said that globally Pakistani cotton prices are being quoted on the basis of KCA spot rates and similarly all claims (including insurance in case of fire, etc) are also based on these rates. According to market sources, a deal from Rahimyar Khan was finalised at Rs8,000 per maund. The following deals were finalised on the ready counter: 800 bales, Daharki, at Rs7,800; 1,000 bales, Ghotki, at Rs7,500 to Rs7,600; 800 bales, Mirpur Mathelo, at Rs7,500; 800 bales, Rahimyar Khan, at Rs7,800; 1,000 bales, Khanpur, at Rs7,800; 200 bales, Sadiqabad, at Rs7,500; 600 bales, Layyah, at Rs7,200; 1,200 bales, Alipur, at Rs7,200; and 2,000 bales, Rajanpur, at Rs7,150.

Published in Dawn, March 10th, 2018