KARACHI: Trading activity on cotton market slowed down on Saturday as phutti arrivals into ginning factories remained extremely low due to smog and fog in Punjab that has partially paralysed movement.

There was also shortage of quality cotton as the picking and haulage of phutti almost came to a standstill in Punjab forcing a large number of ginning factories to stop their operations.

However, cotton prices remained on the higher side suggesting there was a strong demand, but non-availability of quality lint disappointed buyers. According to market sources, after touching seasonal peak cotton prices were hovering between Rs6,500-7,000 per maund.

Punjab phutti variety was selling at Rs2,900-3,450 per 40kg and its Sindh counterpart at Rs2,800-3,350.The Central Cotton Assessment Committee (CCAC) in its last meeting lowered cotton production target from 14.1 million bales to 12.6m bales. However, given the condition of the standing crop, sources estimate that only 12m bales would be produced.

Meanwhile, many spinners have already booked around 1.6m bales for import and this quantity could go up to 2.5m bales, brokers said.

The All Pakistan Textile Mills Association has asked the government to allow imports of Indian cotton and reduce duty on it.

The world leading markets gave mixed trend, with Indian cotton moving lower on higher production forecast. New York and Chinese markets closed firm.

The following major deals were reported to have changed hands on the ready counter: 200 bales, Mian Channu, at Rs7,000; 3,200 bales, Rahimyar Khan, at Rs6,900; 800 bales, Sadiqabad, at Rs6,900; 400 bales, Ferozah, at Rs6,900; 600 bales, Mohammadpur Diwan, at Rs6,900; 400 bales, Jalalpur, at Rs6,800; 400 bales, Shujabad, at Rs6,800; 200 bales, Bakhar, at Rs6,600; 200 bales, Kachiwala, at Rs6,600; 200 bales, Layyah, at Rs6,500; and 200 bales, Chichawatni, at Rs6,500.

Published in Dawn, November 11th, 2015