KARACHI, Aug 17: Cotton market on Friday showed an improved trend as ginners raised their asking prices after the arrivals of phutti from the growers virtually dried up. “Growers seem to have come to the rescue of the falling market as they were among the losers,” said a leading broker, adding “the most effective tool to keep prices on the higher sides is to hold on to the unsold stocks of phutti”.

As a result, prices of both phutti and lint rebounded by Rs50 per maund and halted the market’s downward drift after having fallen by Rs550 to Rs600 per maund early in the week on panic selling by the ginners.

“There was no sign of turmoil witnessed on the cotton market during the last couple of sessions as active short-covering by spinners and mills around Rs2,950 to Rs3,000 put ginners back in the arena”, market sources said.

Prices may not again rose to the peak levels hit early in the week despite a short crop as some consignments of the imported stuff are said to be on the way and could well prove a balancing factor, they added.

Even though if the import figure may touch 2m bales mark, the local lint may remain an envy of many spinners and mills irrespective of higher prices, they added.

But some others said the confusion may persist as both sellers and buyers are well aware of each other’s weak points.

Official spot rates were lowered by Rs50 at Rs2,900 but in the ready section some of the deals were done at much higher rates.

The following deals, all from Sindh ginneries, were reported on Friday evening: 600 bales Shahdadpur and 400 bales each, Tando Adam, Sanghar and Hyderabad at Rs2,950.

The following are Friday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Rate for Ex-Gin Price Up-country Spot rate

Expenses Ex-Karachi

37.324 kgs 2,900 50 2,950.00

Equivalent

40 kgs 3,108 50 3,158.00