KARACHI, Oct 16: Active trading was witnessed on the cotton market on Tuesday as pent up mill demand figured prominently below Rs1,700 per maund.

Dealers said owing to Monday’s general strike as a protest against the US bombing on Afghanistan, some of the needy mills could not cover their nearby needs and reentered the market with big buy orders.

The notable feature of the day’s trading was that some maiden deals were reported in lint from the model cotton area of Rahimyar Khan at Rs1,700. Over 600 bales from Sadiqabad and Rahimyar Khan were sold, indicating that picking operations have started in the southern Punjab cotton belt, which has, in the recent past, assumed the role of major producer of lint cotton.

“The first picking of phutti in this area has just started, and the size of the total crop will be available after the second picking completes,” market sources said.

However, arrivals of phutti into the ginneries in this area is said to be modest and could affect the current price line on the lower side after picking operations gathered momentum, they say.

Spinners and mills appear to be willing buyers of any number of lots offered below Rs1,700 per maund as they conform to their export parity levels against cotton yarn and cloth, they add.

Floor brokers said the current pause in prices after a sustained rise to Rs1,700 from Rs1,425 two weeks earlier, reflected that the market could move both ways depending on the size of arrivals and mill demand.

Prices may or may not beat a hasty retreat from the current levels, but much will depend on the size of the local crop and the reports from the international cotton market, they add.

Meanwhile, reports originating from the textile industry sources say export business has been badly affected by the US attacks on Afghanistan, and foreign buyers are reluctant to sign fresh deals amid fears of disruption in the shipment deadline because of war.

Moreover, local textile items have become a bit expensive because of increase in freight rates and the imposition of war risk surcharge.

There was no change in the official spot rates, but New York cotton futures stayed weak, off 0.68 and 0.54 cents per lb at 31.33 and 32.93 cents per lb for the maturing October and the ruling December settlements respectively.

Ready offtake was active as till late in the evening about 6,000 bales changed hand as under, the following being some of the notable deals;

SINDH TYPE: 600 bales, Sanghar at Rs1,650.00; 200 bales, Tando Adam at 1,650.00; 200 bales at 1,625.00; 600 bales at 1,600.00; 200 bales, Qazi Ahmad at 1,665.00 and 200 bales at 1,675.00; 200 bales Sakrand at 1,650.00 and 200 bales, Moro at 1,650.00.