KARACHI: The cotton market reflected steady conditions on Saturday amid sustained demand for quality lint. Depreciation of the rupee against the dollar helped cotton prices stay firm.

However, trading activity could not rise due to short supply quality cotton. According to market sources, around 0.5 million bales are currently lying with ginners but hardly 20 per cent of these stocks are of quality cotton.

Earlier, major textile groups had booked around 3m bales for import. Almost 1.5m bales of imported cotton have already reached the country. There is hardly any quantity of phutti (seed cotton) left behind in the fields.

The country has managed to produce around 11.52m bales as per last ginners’ body cotton production figures showing a growth of 7.74pc over the last year’s cotton production.

It is encouraging that demand for cotton yarn further increased after rupee devaluation. Exports of textile goods have already recorded 9pc growth during last eight months.

On the other hand, world leading cotton markets closed easy with New York cotton declining for all future contracts after US slapped higher tariffs on Chinese import, triggering fears of a trade war between US and China.

The Karachi Cotton Association (KCA) spot rates closed steady at Rs7,600 per maund.

The following deals were reported to have changed hands on ready counter: 600 bales, Sanghar, at Rs5,650; 400 bales, Khanpur, at Rs7,900; 200 bales, Liaquatabad, at Rs7,900; 400 bales, Rahimyar Khan, at Rs7,800 to Rs7,900; 200 bales, Fazilpur, at Rs7,350; 600 bales, Lodhran, at Rs6,600; 200 bales, Yazman, at Rs6,500; 1,600 bales, Haroonabad, at Rs7,000 (conditional); and 400 bales, Chani Goth, at Rs7,700.

Published in Dawn, March 25th, 2018