KARACHI: Cotton prices edged up on Monday as buying picked up at lower level. However activity could not gain momentum as leading textile spinning groups were conspicuous by their absence.
Small- and medium-sized spinners made efforts to cover up their position while leading textile spinners continue to be busy with import orders.
Currently the cotton market is confronting two major issues including short crop and quality constraints. This has caused uncertainty and buyers are nervous about the situation.
The Cotton Crop Assessment Committee (CCAC) has placed new cotton production figures 33 per cent lower than initial estimates but private sector strongly believes that crop would not be more than 10 million bales.
Brokers said harsh weather – rains, gusty winds, high temperatures and hailstorms – has adversely impacted cotton crop of the country. Both Sindh and Punjab cotton has battered badly.
The Karachi Cotton Association (KCA) spot rates were firm at weekend level at Rs8,700 per maund.
The following deals were reported to have changed hands on ready counter: 3,000 bales, station Khairpur, at Rs8,700-8,800; 1,200 bales, Rohri, at Rs8,700-8,800; 400 bales, Faqirwali, at Rs8,850; 400 bales, Fort Abbas, at Rs8,850; 400 bales, Mianwali, at Rs8,950; 400 bales, Rajanpur, at Rs8,900; 400 bales, Bahawalnagar, at Rs8,800; 400 bales, Burewala, at Rs8,700; and 400bales, Taunsa Shareef, at Rs8,825.
Published in Dawn, October 8th, 2019