Brisk activity on cotton market
KARACHI: Cotton market remained steady on Friday as quality lint buying once again intensified.
Though phutti (seed-cotton) arrivals remained high, reports of quality constraints due to hot weather kept spinners active in replenishing their stocks.
Though the crop size being estimated is larger than last year’s production, but damage to standing crop caused by recent monsoon rains in Sindh and currently heatwave in Punjab is a source of concern.
According to market sources, in coming weeks acute shortage of quality cotton is likely. Increase in trading volume also helped prices to stay stable at higher level. Moreover, improved demand for yarn and fabric also induced sentiment.
Internationally, Chinese cotton came under pressure but New York cotton gave mixed trend. Markets in India remained closed on account of Diwali.
The Karachi Cotton Association (KCA) kept its spot rates steady.