KARACHI: Brisk activity witnessed on the cotton market on Monday where buyers rushed to replenish their stocks amid improved flow of phutti (seed cotton) and better quality.

The activity started at a high note as strong demand witnessed on the weekend extended on sustained buying from spinners who seemed to be in a hurry to build up their stocks, brokers said.

According to market sources, the arrivals of phutti have also improved which eased the availability of quality cotton. However, fear of short crop continues to panic spinners who are rushing back to lift big lot deals.

The quick bouts of buying and selling gradually pushed cotton prices higher and activity also turned fairly brisk. The phutti (seed cotton) prices also soared to a seasonal high. The Sindh and Punjab qualities were reported to be quoted between Rs3,300 and Rs3,500 per 40 kilograms.

Late in the evening reports poured into the trading ring that rains in many cotton-growing areas of Punjab and in lower Sindh started creating fear of damage to the standing crop, brokers said.

As Pakistan and India are going to harvest shorter cotton crop this season, both the countries are likely to import substantial quantity to meet their industry’s demand, they added.

India is being estimated to harvest around 34.6 million bales and Pakistan around 12m bales, brokers said. Other world cotton markets, however, remained steady.

The Karachi Cotton Association kept its spot rate unchanged. Major deals on the ready counter were: 2,000 bales from Sanghar (at Rs6,700 to Rs6,750 per maund), 1,000 bales Shahpur Chakar (Rs6,750), 3,000 bales Shahdadpur (Rs6,750), 2,600 bales Tando Adam (Rs6,750), 2,000 bales Mirpurkhas (Rs6,750), 1,200 bales Hyderabad (Rs6,750), 800 bales Kotri (Rs6,750), 800 bales Maqsoodo (Rs6,750), 1,000 bales Hala (Rs6,750), 800 bales Khandro (Rs6,750), 600 bales Chichawatni (Rs6,850 to Rs6,900), 400 bales Rahimyar Khan (Rs6,850) and 800 bales Moro (Rs6,750).

Published in Dawn, August 23rd, 2016