KARACHI: Cotton prices inched up on Monday following renewed buying interest from some leading textile spinners vying for quality lots amid tight supplies.
The phutti (seed-cotton) prices declined due to higher moisture content affecting the quality of lint.
The Sindh variety phutti was quoted between Rs3,000-3,300 per maund and its Punjab counterpart in the range of Rs3,500-4,000 and Balochistan at Rs3,500-3,600 per 40kg.
However, brokers were optimistic that there will be a surge in cotton demand once the issue of moisture is over and phutti arrivals into ginneries pick up momentum because the spinning mills are in dire need of quality cotton.
According to market sources, many fear that cotton growing areas in Punjab may face heavy flooding once India releases water.
The leading world cotton markets also moved higher after US-China trade war subsided at least for the time being. The New York cotton initially came under pressure but closed with modest gains. The Chinese and Indian markets also closed firm.
The Karachi Cotton Association (KCA) spot rates were revised upward by Rs50 to Rs7,800 per maund.
The following deals were reported to have changed hands on the ready counter: 1,600 bales, Sanghar, at Rs7,550-7,700; 1,400 bales, Hyderabad, at Rs7,550-7,600; 2,000 bales, Tando Adam, at Rs7,550-7,700; 1,600 bales, Sahdadpur, at Rs7,600-7,750; 600 bales, Mirpurkhas, at Rs7,600-7,700; 600 bales, Khanewal, at Rs8,200-8,225 and 600 bales, Chichawatni, at Rs8,200.
Published in Dawn, August 20th, 2019