KARACHI: Cotton prices moved lower on Monday due to panic selling by some ginners holding substantial stocks of phutti (seed cotton).

According to market sources, many spinners have accumulated stocks which are sufficient to meet their demand even after Eidul Azha. Therefore, sudden withdrawal of leading spinners from the trading ring caused panic amongst ginners, they added.

Reports coming from Sindh are not encouraging as the ongoing spell of rains is hindering cotton picking. Meanwhile, rains in Punjab are being considered beneficial because cotton crop is mostly in growth stage and flowering is limited.

Due to sudden fall in cotton demand from mills, phutti prices declined for both Sindh and Punjab varieties. Meanwhile polyester staple fiber prices were cut by Rs5 per kg across the board and prices has been fixed at around Rs197 per kg, market sources said.

The world leading cotton markets also came under pressure with Indian cotton losing around Rs100-200 per candy (356 kg).

The Karachi Cotton Association (KCA) spot rates were lowered further by Rs100 to Rs8,500 per maund.

The following deals were reported to have transpired on ready counter: 1,600 bales, station Tando Adam, at Rs8,450-8,500; 1,200 bales, Sanghar, at Rs8,400-8,450; 1,400 bales, Shahdadpur, at Rs8,4500-8,500; 1,200 bales, Hyderabad, at Rs8,400-8,450; 1,000 bales, Mirpurkhas, at Rs8,450; 600 bales, Chichawatni, at Rs8,675-8,725; 600 bales, Burewala, at Rs8,650; 400 bales, Vehari, at Rs8,650; and 400 bales, Ahmedpur, at Rs8,650.

Published in Dawn, July 30th, 2019