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Cotton price edges up

Cotton price edges up

KARACHI: Sustained buying interest from spinners helped cotton prices rise on Saturday amid reports of delay in arrivals of next crop.

Floor brokers said slowdown in phutti (seed cotton) arrivals caused panic among spinners who went on a buying spree to cover up their positions.

Delay in early sowing in Punjab because of current spell of rains induced strong buying. However, activity remained moderate to active as there was shortage of quality cotton, brokers said.

However, a big single deal of 6,000 bales from Rahimyar Khan was reported to have been picked up by a leading spinner at a high price, indicating that there is panic in the spinning industry with regard to cotton shortage.

The trading pattern indicated that buyers generally focused on quality lint as most of the deals were done at high price and in Punjab variety cotton. Other deals were generally in medium quality cotton, they added.

The world cotton markets generally remained steady but New York cotton after recording persistent rise came under correction where all the future contracts closed with modest losses.

The Karachi Cotton Association (KCA) raised its spot rates upward for second straight session by Rs50 to Rs5,300 per maund.

Major deals on ready counter were: 800 bales from Mirpur Mathilo (Rs5,300), 700 bales from Khanpur Mehar (Rs5,300), 800 bales from Multan (Rs5,100 to Rs5,275), 400 bales from Liaquatpur (Rs5,350), 3,600 bales from Khanpur (Rs5,375 to Rs5,475), 6,000 bales from Rahimyar Khan (Rs5,400) and 1,311 bales from Fazilpur (Rs5,500).

Published in Dawn, March 20th, 2016

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