KARACHI: Revival of buying interest from major spinning groups generated activity in the cotton market on Thursday. Availability of quality cotton is running short and causing panic among buyers.
Cotton prices, after experiencing correction during last three sessions, have also started to stabilise.
With the crop size being lowered on each estimate, textile spinners fear a huge gap between demand and supply. Some leading textile spinning groups were seen active in replenishing their stocks at higher level on booking big lot deals.
Two huge deals of 16,000 bales from Sadiqabad and 7,400 bales from Rahim Yar Khan highlighted trading, brokers said. Similarly, many other deals of large size featured trading which indicate that buyers are striving hard to get hold of maximum quantity of cotton from local market, they added.
The world leading cotton markets remained easy owing to slackness in demand and rising tension in trade relation between US and China.
The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs9,350 per maund
The following major deals were reported to have changed hands on ready counter: 1,400 bales, station Saleh Pat, at Rs9,300; 1,200 bales, Khairpur, at Rs8,900-9,150; 1,000 bales, Haroonabad, at Rs8,975; 3,400 bales, Yazman Mandi, at Rs9,050-9,125; 16,000, Sadiqabad, at Rs9,550; 2,400 bales, Khanpur, at Rs9,550-9,600; and 7,400 bales, Rahim Yar Khan, at Rs9,700.
Published in Dawn, November 8th, 2019