Cotton rates firm up as crop size fears ruled out
KARACHI: Steady conditions prevailed on the cotton market on Wednesday as buyers indulged in short covering for their near future demands.
Rising cotton prices also impacted phutti (seed cotton) prices which rose for both Sindh and Punjab varieties.
The sentiment was induced by Pakistan Central Cotton Committee’s (PCCC) review which said that no major loss was suffered by the crop and production would be close to official estimates.
Panic buying of the past two days was no longer evident as both buyers and sellers seemed to have rationalised their approach.
The PCCC cotton review has set aside all fears and apprehensions that were afloat about the size of the crop in the light of heat wave, smog and fog impact, said Naseem Usman, chairman Karachi Cotton Brokers’ Forum.
Phutti prices rose to Rs2,800-3,300 for Sindh variety and to Rs2,800-3,450 per 40kg for Punjab quality.
Trading in spot deals remained fairly brisk, with prices remaining steady and close to overnight level.
The world leading cotton markets gave mixed trend with New York cotton coming under correction and closed easy for all future contracts. The India cotton was under pressure on higher production report.
The Karachi Cotton Association (KCA) spot rates were unchanged at overnight level.
The following major deals were reported to have changed hands on ready counter: 1,600 bales, Ghotki, at Rs6,800 to Rs6,900; 1,600 bales, Daharki, at Rs6,900; 800bales, Rohri, at Rs6,550 to Rs6,600; 800 bales, Saleh Pat, at Rs6,550 to Rs6,600; 1,000 bales, Khairpur, at Rs6,450 to Rs6,500; 800 bales, Mirpur Mathelo, at Rs6,800 to Rs6,900; 5,200 bales, Rahimyar Khan, at Rs6,900 to Rs6,950; 800 bales, Sadiqabad, at Rs6,950; 3,200 bales, Mianwali, at Rs6,600; 1,000 bales, Vehari, at Rs6,400; 800 bales, Haroonabad, at Rs6,175 to Rs6,550; and 800 bales, Sadiqabad, at Rs6,950.
Published in Dawn, November 23rd, 2017