KARACHI: Cotton prices remained on higher side owing to sustained demand on Tuesday. However, activity could not pick up because ginners generally remained on the sidelines.

Global markets trend was also slow but steady with Indian cotton market came under profit-selling after achieving high prices during the last couple of sessions. The prices came down by Rs1,000 to Rs40,000 per candy (350 kilograms).

There was demand for quality cotton from spinners but high prices discouraged many from entering into deals, brokers said. Besides, ginners avoided to enter into big deals because they are waiting for the phutti (seed cotton) arrivals report due on Wednesday (today).

Meanwhile, reports coming from India suggest that phutti arrivals in India have slowed down to 160,000 bales from 200,000 bales per day, which indicates that crop size would be smaller than earlier estimates.

Bangladesh exporters have also reportedly started demanding higher rebate after the Pakistani government allowed seven per cent rebate on garment exports. Similar demands are being raised by India and Vietnamese exporters, brokers said.

The Karachi Cotton Association kept its spot rates unchanged on Tuesday. Major deals on the ready counter were: 600 bales from Rahimyar Khan (done at Rs6,700), 600 bales Khanewal (Rs6,700), 800 bales Haroonabad (Rs6,550 to Rs6,600) and 400 bales Hasilpur (Rs6,400).

Published in Dawn January 18th, 2017