KARACHI: The trading volume on the cotton market contracted sharply on Saturday though lint prices maintained a bullish outlook amid crop shortfall.
Market reports suggest that shortage of quality lint and high prices deterred buyers from entering into deals.
However, some reports indicate that textile mills have taken a respite for the time being after hectic buying throughout the week.
During the week cotton prices rose between Rs100 -300 per maund on ready counter while phutti (seed cotton) prices also increased to a seasonal high level.
The Sindh variety cotton prices were quoted between Rs7,800-9,150 per maund and phutti stood in the range of Rs3,000-4,400 per 40kg. Prices of Punjab quality cotton were quoted in the range of Rs8,750-9,150 per maund and phutti between Rs3,800-4,440 per 40kg.
The cotton crop has been extensively damaged due to harsh weather and pest attacks. The crop size has been reduced by up to 27 per cent, brokers said. They added that fallout of current crop would have a devastating impact on next cotton crop as growers — after suffering huge losses — are planning to shift to other crops next season.
The world leading cotton markets gave mixed trend with New York cotton continued to firm up for all future contracts. The Chinese and Indian cotton were also steady.
The Karachi Cotton Association (KCA) spot rates were steady at overnight level at Rs8,950 per maund.
The following deals were reported to have transpired on ready counter: 1,000 bales, station Rohri, at Rs8,875-9,000; 1,000 bales, Khairpur, at Rs8,800-8,900; 2,000 bales, Khanewal, at Rs9,100; 200 bales, Mianwali, at Rs9,150; 400 bales, Hasilpur, at Rs9,000; and 400 bales, Rajanpur, at Rs8,925.
Published in Dawn, October 20th, 2019
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