KARACHI: Cotton prices remained firm on sustained demand from spinners and some exporters. High phutti (seed cotton) prices, however, prevented cotton prices from come down.
Many spinners preferred to mark time in order to see cotton prices come down which restricted trading volume. Though most of the world leading cotton markets closed easy, the local market stood firm.
Steady flow of phutti allowed spinners and exporters access to ample supply of quality cotton.
Brokers said weekly closure on Friday of commodity markets in Punjab normally does impact cotton trading volume.
On Friday, New York cotton closed easy and so did Indian cotton. Chinese markets remained closed on account of independence celebrations.
According to market sources, phutti prices continued to stay high in the range of Rs2,800-3,050 per 40 kg, preventing cotton prices from moving lower.
Forecast of higher cotton production this season by leading cotton producing countries – India, China, US and Pakistan – is expected to keep prices under pressure.
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: 1,000 bales, Rohri, at Rs6,150; 1,000 bales, Saleh Pat, at Rs6,150; 1,000 bales, Khairpur, at Rs6,125; 1,000 bales, Mianwali, at Rs6,100; 1,200 bales, Haroonabad, at Rs6,100; 1,200 bales, Hasilpur, at Rs6,150; 1,400 bales, Khanewal, at Rs6,150; 1,400 bales, Burewala, at Rs6,150 to Rs6,175; 1,600 bales, Layyah, at Rs6,165 to Rs6,175; 1,600 bales, Shujabad, at Rs6,150; 1,200 bales, Chichawatni, at Rs6,175 to Rs6,200; and 1,400 bales, Rajanpur, at Rs6,200.