MULTAN: Trading activity on the cotton market improved on Tuesday as textile mills replenished their stocks with quality lint.

There was also an increase of Rs50 in the prices of phutti (seed cotton). Karachi Cotton Association kept its spot rate unchanged at Rs9,050.

Cotton broker Syed Mudabbir Shah said that millers are returning to the cotton market after a break of few days.

“Millers have started buying lots and are okay paying increased prices to ginners. However, ginners are reluctant to enter into big deals as they still believe that rates in local market will further increase.

The New York cotton market, where future contracts were on sizeable decline earlier, moved higher before its closure last night which is a positive sign for ginners,” he added.

Meanwhile, cotton analyst Naseem Usman noted that markets across the globe are facing slow trading activities.

“The situation in Pakis­tan will also not be different from other countries and prices of the commodity could fall further,” he added.

Phutti prices in both Sindh and Punjab remained pegged between Rs3,200-4,850.

The following deals were reported to have changed hands on ready counter: 800 bales, station Rajanpur, at Rs9,575 and Rs9,500 (400 bales each, stock lots) and Rs8,500 (400 bales, low quality); 2,000 bales, Shuja­bad, at Rs8,200; 600 bales, Fort Abbas, at Rs9,300, Rs9,275 and Rs9,200 (200 bales each); 600 bales, Faqirwali, at Rs8,700 and Rs8,600 (200 bales each); 400 bales, Khanpur, at Rs9,125 and Rs9,100 (200 bales each); and 400 bales, Mirpur Mathelo, at Rs9,225.

Published in Dawn, January 29th, 2020