KARACHI: Brisk activity was witnessed on the cotton market as spinners remained engaged in buying spree. Much of the activity remained around quality cotton which seems to be in short supply.
Spinners happily paid quality premium in order to get hold of lots of their choice which pushed prices higher by Rs50-100 per bale on ready trading.
Though cotton production is being estimated at around 13 million bales, much higher than last year’s production of about 10 million bales, but quality issues are forcing spinners to stock their inventories.
Former chairman Pakistan Cotton Ginners Association (PCGA) Jehtaalad Kohistani told Dawn that recent monsoon rains had affected the quality of cotton in Dadu district of Sindh.
The current heat wave is also not good for standing cotton plants in Punjab and Sindh, added. He hoped the country would still achieve the production target of 13m bales.
The quality issue, however, could impact prices as spinners throughout the season would prefer to pay premium price in order to get cotton of their choice, Mr Kohistani added.
Smooth phutti arrivals have ensured that ginners remain fully occupied in its processing.
Punjab variety phutti is being quoted higher in the range of Rs3,100-3,200 and Sindh quality between Rs2,900-3,000 per 40kg.
The world leading cotton market also closed steady with New York cotton gave erratic behavior.
The Karachi Cotton Association (KCA) spot rates were steady at overnight level.
The following major deals were reported to have changed hands on ready counter: 1,600 bales, Salah Pat, at Rs6,250 to Rs6,300; 1,000 bales, Rohri, at Rs6,200 to Rs6,250; 2,000 bales, Khairpur, at Rs6,225 to Rs6,250; 1,400 bales, Khanewal, at Rs6,250 to Rs6,300; 1,000 bales, Vehari, at Rs6,250 to Rs6,275; 1,000 bales, Shujabad, at Rs6,250 to Rs6,275; 1,000 bales, Burewala, at Rs6,250; 2,200 bales, Bahawalpur, at Rs6,200 to Rs6,250; 2,200 bales, Mianwali, at Rs6,175 to Rs6,250; 1,400 bales, Bahawalnagar, at Rs6,200 to Rs6,225; 1,000 bales, Layyah, at Rs6,200; and 800 bales, Fort Abbas, at Rs6,200.