KARACHI: Cotton prices came under renewed pressure and closed easy on Wednesday as buyers restricted their activity around quality lint. As a result phutti (seed cotton) prices also moved lower.

Textile spinners are finding it difficult to get hold of quality cotton and this is slowing down trading activity and pushing prices lower. This is despite the fact that there is a huge gap between demand and supply.

Cotton picking in Sindh has almost come to an end while second picking is going on in Punjab. However, short crop is likely to close the current season much earlier than usual period.

According to market sources, phutti prices came down in line with cotton rates. Phutti from Sindh was quoted between Rs3,000-4,500, Punjab quality range around Rs3,200-4,100 and Balochistan between Rs3,200-4,200 per 40 kg. World leading cotton markets gave mixed trend with New York cotton recovering partially, while Chinese and Indian cotton were mixed to steady.

The Karachi Cotton Association (KCA) spot rates were raised by Rs50-8,750 per maund.

The following deals were reported to have changed hands on ready counter: 600 bales, Shahdadpur, at Rs7,700-8,000; 2,400 bales, Khairpur, at Rs8,000-8,500; 2,000 bales, Sadiqabad, at Rs8,900-9,000; 2,400 bales, Rahim Yar Khan, at Rs8,900-8,950; 400 bales, Dunga Bunga, at Rs8,300; 600 bales, Haroonabad, at Rs8,250; and 400 bales, Fort Abbas, at Rs8,200.

Published in Dawn, December 12th, 2019