KARACHI: The cotton market suddenly became firm on Saturday following reports of lesser crop size for the current season (2018-19) over the previous year, with estimates being placed at less than 11 million bales.

Many spinners replenished their stocks fearing renewed price spiral in coming days. However, their activity remained focused around quality cotton which restricted trading volume to some extent.

According to latest cotton production figures, there is a shortage of around 0.45m bales as production up to November remained around 0.776m bales, or 5.26 per cent less than corresponding period of last year.

In sympathy, phutti (seed-cotton) prices also moved higher with the Sindh variety being quoted at around Rs3,700 to Rs4,200, Punjab between Rs3,700 to Rs4,300 and Balochistan in the range of Rs3,800 to Rs4,300 per 40kg.

Strangely, the polyester fibre prices declined by Rs6 per kg and moved down to Rs194 from Rs200 per kg. Buyers are also facing quality issues as cotton in many areas could not attain proper maturity owing to depleted strength of seeds being used in the country.

On the global front, Indian cotton came under pressure and closed lower between Rs500 to Rs700 per candy and New York cotton also remained under pressure. However, Chinese cotton was steady.

The Karachi Cotton Association (KCA) spot rates were raised by Rs100 to Rs8,750 per maund.

The following deals were reported to have changed hands on ready counter: 600 bales, from station Moro, done at Rs8,550 to Rs8550; 800 bales, Ghotki, at Rs8,100 to Rs9,150; 600 bales, Daherki, at Rs9,100; 1,000 bales, Saleh pat, at Rs8,850 to Rs8,900; 1,000 bales, Rohri, at Rs8,800; 1,000 bales, Khairpur Mirus, at Rs8,800; 600 bales, Faqeerwali, at Rs8,600; 1,400 bales, Haroonabad, at Rs8,700; 1,000 bales, Sadiqabad, at Rs8,900 to Rs9,050; 800 bales, Rahimyar Khan, at Rs900; 800 bales, Fort Abbas, at Rs8,750 and 200 bales, from Maroot were done at Rs8,800.

Published in Dawn, November 6th, 2018