KARACHI: Trading activity on the cotton market slowed down on Wednesday as buyers were reluctant to enter into big deals because of high prices of the commodity.

Cotton rates have been rising for the last three days due to heavy buying.

Despite slow down in buying activity, cotton prices remained static at high level. Millers restricted their buying activity to small lot deals, brokers said.

According to market sources many textile spinning groups have started to place import orders under the Duty and Taxes Remission on Exporter (DTRE) scheme. Private estimates place cotton production at not more than 11 million bales for current season.

The recent heavy rains and storm in Bahawalpur and Lodhran in Punjab have damaged standing cotton crop. Although downpour normally helps to wash whitefly from cotton crop but strong winds have damaged standing crop. It is being feared that crop size and quality of cotton would also be affected. Some reports suggested storm also damaged sugarcane and corn crop.

The world leading cotton markets were firm with New York cotton partially recovering recent losses. Indian cotton was also firm while Chinese cotton market remained close.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs8,700 per maund.

The following deals were reported to have changed hands on ready counter: 1,000 bales, station Nawabshah, at Rs8,225; 2,200 bales, Hyderabad, at Rs8,750-8,800; 1,200 bales, Fazilpur, at Rs8,850; 1,200 bales, Haroonabad, at Rs8,800-8,850; 1,000 bales, Rajanpur, at Rs8,850; and 1,000 bales, Layyah, at Rs8,750-8,800.

Published in Dawn, October 3rd, 2019