KARACHI: Steady condition prevailed on the cotton market on Friday as buyers continued to cover up their position with new crop lint. Higher arrival of new crop from Sindh created demand from textile mills.

However, arrival of phutti (seed cotton) from Punjab cotton fields has yet to gain momentum. Meanwhile reports suggest some cotton growing areas in the southern part of the province are experiencing pest attacks.

Many leading spinners are waiting for arrival of new crop from those districts of Punjab which are known for growing quality cotton. Trading in old crop has almost come to a standstill as very little stocks are left with ginners.

The Pakistan Oil Mills Association (POMA) has threatened to go on strike against the imposition of 5 per cent sales tax for filers and 8pc for non-filers on cotton seed oil cake.

Internationally, New York cotton market came under pressure on lesser exports during the week while Chinese cotton gave mixed trend. Indian cotton also closed easy.

The Karachi Cotton Association (KCA) spot rates were lowered by Rs100 to Rs8,300 per maund.

The following deals were reported to have changed hands on ready counter: 1,000 bales, Tando Adam, at Rs8,375-8,450; 800 bales, Sanghar, at Rs8,375-8,400; 1,300 bales, Chichawatni, at Rs8,500-8,600; 600 bales, Mirpurkhas, at Rs8,400; 600 bales, Burewala, at Rs8,500-8,575; 200 bales, Hasilpur, at Rs8,550; 300 bales, Vehari, at Rs8,500; and 200 bales, Samundri, at Rs8,550.

Published in Dawn, July 13th, 2019