KARACHI: Buyers on Wednesday continued their covering operations in quality cotton from Punjab as supplies improved sharply following higher phutti arrivals into the ginneries.

It was interesting to note that a large number deals for medium- to small-sized lots were finalised, but market reports suggest that big textile spinning groups have already started to explore foreign markets for import of cotton.

According to market estimates import orders for one million cotton bales have already been placed by these groups under the government’s scheme of Duty and Taxes Remission on Exports (DTRE) to meet shortfall in cotton production.

Reports indicate that rains damage cotton quality in Sindh while pest attack in Punjab will directly impact the crop size.

The world leading cotton markets gave erratic behaviour amid reports that India may be harvesting a bigger crop this year which will leave with huge exportable surplus.

The Karachi Cotton Association (KCA) left its spot rates unchanged at overnight level at Rs8,600 per maund.

The following deals were reported to have changed hands on the ready counter: 1,000

bales, Shahdadpur, at Rs7,900 to Rs8,000; 1,600

bales, Khairpur, at Rs8,650 to Rs8,700; 2,000

bales, Haroonabad, at Rs8,775 to Rs8,800; 800

bales, Mian Channu, at Rs8,800; 800 bales,

Rahimyar Khan, at Rs8,800; 1,000 bales, Burewala,

at Rs8,700; 1,200 bales, Chichawatni, at Rs8,650

to Rs8,700; 800 bales, Yazman, at Rs8,700 to

Rs8,750; and 800 bales, Tando Adam, at Rs7,900 to Rs7,950.

Published in Dawn, September 26th, 2019