Cotton market steady amid selective buying
KARACHI: The cotton market was steady on Saturday as buyers faced with shortage covered up their position with quality lint.
Floor brokers said higher cotton export figures for the outgoing week released by the US Department of Agriculture induced buying from leading spinners.
As the current cotton season is drawing to a close, the flow of phutti (seed cotton) from cotton fields into ginneries has slowed down. Consequently, millers are faced with a problem of getting quality lint, brokers added.
Therefore, sustained buying from spinners for quality lint helped prices to stay firm amid fairly active buying.
The New York cotton came under mild selling pressure to record correction from a weeklong rising trend. As a result, all the futures closed with modest losses.
The Karachi Cotton Association’s (KCA) spot rates remained unchanged.
Major deals finalised on ready counter were: 800 bales Haroonabad done at Rs4,700 to Rs4,850, 600 bales Jalalpur done at Rs4,850, 800 bales Fazilpur done at Rs5,000 to Rs5,050, 1,000 bales Ahmedpur done at Rs5,000 to Rs5,050, 2,500 bales Bahawalpur done at Rs5,100, 1,000 bales Sadiqabad done at Rs5,100, 2,000 bales Rahimyar Khan done at Rs5,100 and 400 bales Mohammadpur Dewan done at Rs5,100.
Published in Dawn, February 8th, 2015
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