KARACHI: After witnessing a week-long buying spree from textile mills and leading exporters, trading activity on cotton market slowed down on Saturday. However, some short-covering from needy spinners was still evident which kept prices steady.
According to market sources slow demand for yarn and textile products on the world market was depressing prices the world over. The prices of textile goods in the world market are also falling which is a causing of concern.
For most of the week cotton prices for Sindh variety were quoted at around Rs8,000 to Rs8,100 and for Punjab quality in the range of Rs8,200 to Rs8,300 per maund. Phutti (seed cotton) prices for both Sindh and Punjab varieties were quoted between Rs3,500 to Rs3,800 per 40kg.
Meanwhile, cotton production estimates by different government departments and private sector are being placed between 11.5 million bales to 14m bales.
Cotton analyst Naseem Usman told Dawn that it was too early to predict cotton production estimates. “It is better to wait for the Cotton Crop Assessment Committee’s report.”
“Recently incorrect estimates were placed before the Senate Committee on Agriculture by government departments. This disturbed market sentiments and affected the cotton economy,” he alleged.
The world leading cotton markets also remained under pressure with New York cotton closing lower for the second consecutive session. The Indian cotton market was steady while the Chinese market gave a mixed trend.
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: 1,600 bales, station Shahdadpur, at Rs8,075-8,100; 1,600 bales, Tando Adam, at Rs8,100; 1,400 bales, Sanghar, at Rs8,050-8,100; 1,400 bales, Mirpurkhas, at Rs8,025-8,100; 800 bales, Shahpur Chakkar, at Rs8,075-8,100; 1,000 bales, Nawabshah, at Rs8,050-8,100; 600 bales, Burewala, at Rs8,250-8,275; 200 bales, Mianwali, at Rs8,300; 600 bales, Haroonabad, at Rs8,250-8,265; 400 bales, Vehari, at Rs8,250-8,300; 200 bales, Rajanpur, at Rs8,300; and 200 bales, Jalalpur, at Rs8,300.
Published in Dawn, September 2nd, 2018