KARACHI: Renewed buying interest ahead of long closure on account of Ashura helped cotton prices recover partially. Steady flow of buying orders kept the proceedings brisk.

At the outset there were buying orders from spinners and some exporters. The textile industry is hopeful that the new measures announced by Finance Minister Asad Umar including reduced tariff for gas will help revive the sector.

The upcoming closure forced the textile industry to accumulate some cotton stocks to meet their demand. Buying rush resulted in partial recovery of cotton prices.

The first cotton production report issued by ginners’ body showing little impact of water shortage on cotton crop in Sindh was taken as a positive development. Similarly, in Punjab the crop is so far satisfactory with some pest attack reports in few districts.

Indian cotton also came under renewed pressure and closed easy by up to Rs200 per candy (356 kg). However, Chinese cotton was steady.

The Karachi Cotton Association (KCA) spot rates were also revised upward by Rs50 to Rs8,250 per maund.

The following deals were reported to have changed hands on ready counter: 3,800 bales, station Shahdadpur, at Rs8,200-8,225; 2,000 bales, Tando Adam, at R8,175-8,200; 2,000 bales, Sanghar, at Rs8,200-8,225; 1,000 bales, Mirpurkhas, at Rs8,200-8,250; 2,000 bales, Nawabshah, at Rs8,250-8,300; 1,600 bales, Rohri, at Rs8,375; 1,000 bales, Saleh Pat, at Rs8,350; 3,000 bales, Khairpur, at Rs8,250-8,325; 600 bales, Chichawatni, at Rs8,250-8,300; 600 bales, Khanewal, at Rs8,375-8,400; 200 bales, Lodhran, at Rs8,350; 200 bales, Rajanpur, at Rs8,400; 400 bales, Rahim Yar Khan, at Rs8,400; and 200 bales, Shujabad, at Rs8,400.

Published in Dawn, September 19th, 2018