MULTAN: Cotton prices remained stable on Saturday as short supply of the commodity kept trading restricted. The Karachi Cotton Association also kept its spot rate unchanged at Rs8,400. Phutti (seed cotton) prices remained between Rs3,500-4,000.

Cotton experts said that earlier on the arrival of poor quality phutti was disturbing prices in Sindh but now the issue been resolved. If there are rains in Sindh, phutti quality will still be maintained, they added.

As per reports, cotton cultivation area in the United States has been reduced to 13.72 million acres from 14.1m acres in the same time last year.

China is the largest buyer of cotton in the international market. Cotton prices in USA have declined due to increasing tariffs. This has forced cotton growers in the US to decrease the area under cultivation.

Experts said that after the meeting of US President Donald Trump with Chinese President Xi Jinping in Japan, it is being hoped that prices at international level will improve.

Meanwhile, ginners in the local market also restricted trading after reports of the meeting, hoping that domestic prices will increase from Monday onwards. Currently there is a difference of Rs1,500 for same quality cotton in international and local markets, with the former being pricier.

Some major buyers were seen active on the market on Saturday . The following deals were reported to have transpired on ready counter: 800 bales, station Rahim Yar Khan, at Rs8,600; 600 bales, Sanghar, at Rs7,900-8,000; 600 bales, Tando Adam, at Rs7,975-8,000; and 400 bales, Mirpurkhas, at Rs7,950.

Published in Dawn, June 30th, 2019