KARACHI: Brisk buying pushed cotton prices higher on Monday as smooth availability of quality lint encouraged millers and exporters to cover up their positions.
Steady flow of phutti (seed-cotton) increased availability of quality lots. Most of the deals transpired in Sindh variety.
Trading featured big-lot transactions originating from spinners who chased quality lint thereby pushing prices higher by Rs50 to Rs100 per maund. However, the Karachi Cotton Association (KCA) left its spot rates unchanged at weekend level.
Meanwhile, the International Cotton Advisory Committee (ICAC) has estimated that world cotton production would be short by up to 3 per cent. This is being reckoned as a major driving force behind brisk buying from spinners. The ICAC has also estimated that cotton consumption this year would be up by 3pc. The ICAC further said that carryover world cotton stocks are short by around one million bales.
The world leading cotton markets closed mixed with New York cotton rose 1.5 cents per lb and Chinese cotton was steady. The following deals were reported to have changed hands on ready counter: 1,000 bales, station Tando Adam, at Rs8,250-8,300; 1,200 bales, Shahdadpur, at Rs8,250-8,300; 1,200 bales, Sanghar, at Rs8,250-8,300; 1,000 bales, Mirpurkhas, at Rs8,200-8,350; 4,000 bales, Nawabshah, at Rs8,300; 4,000 bales, Saleh Pat, at Rs8,300; 3,000 bales, Rohri, at Rs8,300; 2,000 bales, Khairpur, at Rs8,300; 400 bales, Rajanpur, at Rs8,450; 400 bales, Khanewal, at Rs8,400; 600 bales, Kabirwala, at Rs8,375-8,400; 200 bales, Mian Channu, at Rs8,400; and 800 bales, Chichawatni, at Rs8,400.
Published in Dawn, September 11th, 2018