KARACHI: Cotton prices remained under correction for the second consecutive day on Tuesday as buyers mostly stayed away.

However, the availability of good quality lint attracted some buyers to book stocks to meet their immediate needs.

According to some importers, high quality cotton in world market is cheaper than local lint by Rs500 per maund. Local cotton has many issues as it is not long staple and often contaminated, they added.

The recent rains in upper Sindh have affected lint as a change in colour and deteriorating quality have been reported, brokers said.

Though prices are under correction, high quality cotton rates are still above market average, brokers added.

The slow off take of cotton yarn in domestic market also inhibited textile spinning units to build up their cotton stocks. There are reports that textile ancillary industry is facing a severe liquidity crunch.

On global front, New York cotton rose. Chinese cotton remained steady while Indian cotton closed easy.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs9,400 per maund.

The following deals were reported to have changed hands on ready counter: 800 bales, Ghotki, at Rs9,650; 600 bales, Mirpur Mathelo, at Rs9,700; 2,000 bales, Khairpur, at Rs9,050-9,150; 2,600 bales, Rahim Yar Khan, at Rs9,650-9,700; 2,200 bales, Sadiqabad, at Rs9,600-9,650; 1,200 bales, Mianwali, at Rs9,400-9,450; 1,000 bales, Bahawalpur, at Rs9,300; 1,400 bales, Faqirwali, at Rs9,300; 1,000 bales, Ghazi Ghat, at Rs9,200; and 800 bales, Yazman Mandi, at Rs9,300.

Published in Dawn, November 6th, 2019