KARACHI: In the midst of brisk trading, cotton prices moved higher for the second consecutive day on Tuesday backed by strong demand from spinners and some exporters.

The highly fluid conditions on world cotton markets as well as uncertainty about local crop size kept spinners cashing quality cotton which pushed prices higher by Rs50 to Rs8,350 per maund on ready counter.

In sympathy, the Karachi Cotton Association (KCA) also revised spot rates upward by Rs150 more to Rs8,150 per maund which narrowed down gap between spot trading and official rate.

Fear of reduced crop size after reports of pest attacks in some cotton growing districts of Punjab has created panic, brokers said.

Polyester fibre prices were raised by Rs5 per kg to Rs203 from Rs198 per kg.

Phutti (seed cotton) prices also moved higher with Sindh variety quoted between Rs3,700-4,000 per 40kg, Punjab in the range of Rs3,600-4,100 and Balochistan between Rs3,600-4,000.

On the global front New York cotton slight recovered for all future contracts while China and Indian markets were firm. The Cotton Association of India has lowered cotton production for current season.

The following deals were reported to have transpired on ready counter: 2,400 bales, Nawabshah, at Rs8,100-8,200; 2,000 bales, Rohri, at Rs8,250-8,300; 1,800 bales, Saleh Pat, at Rs8,300-8,350; 3,600 bales, Khairpur, at Rs8,250-8,350; 2,000 bales, Rajanpur, at Rs8,300; 1,000 bales, Rahim Yar Khan, at Rs8,250-8,350; 1,400 bales, For Abbas, at Rs8,150-8,255; 1,000 bales, Haroonabad, at Rs8,100-8,250; 1,000 bales, Layyah, at Rs8,150-8,250; 1,200 bales, Faqirwali, at Rs7,900-8,200; and 1,400 bales, Chichawatni, at Rs7,900-8,000.

Published in Dawn, October 10th, 2018