KARACHI: Steady flow of buying orders from needy spinners on Thursday helped keep the price line firm on cotton market.
However, dwindling stocks with ginners are worrying millers who still need substantial quantity of the commodity to see the current season through.
As the current cotton season (2018-19) nears close, phutti (seed cotton) arrival has declined to a negligible level and most ginning units have shut down operations.
The market is in shock following news of Finance Minister Asad Umer’s resignation. This is adding to uncertainty as it points out that all is not well in the corridors of power, brokers said.
Meanwhile, there is sustained demand of cotton yarn. The value-added textile sector is also procuring fabric in larger quantity to meet clothing demand ahead of Eidul Fitr.
Interestingly, the government has yet to officially announce the size of next cotton crop (2019-20). So far only Prime Minister Imran Khan has said that cotton crop size for next season should be at 15 million bales.
The world leading cotton markets gave mixed trend with New York giving erratic price line and Chinese and Indian cotton closed steady.
The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs8,800 per maund.
The following deals were reported to have changed hands on ready counter: 400 bales, station Khanpur Mehal, at Rs8,850; 1,400 bales, Rahim Yar Khan, at Rs8,850-9,000; 600 bales, Shujabad, at Rs9,000; 600 bales, Alipur, at Rs8,900; and 366 bales, Mianwali, at Rs8,600.
Published in Dawn, April 19th, 2019