KARACHI: Activity resumed slightly on the cotton market as renewed buying interest at the lower level was evident from needy spinners. However, overall sentiment remained weak and outlook uncertain.
The market continues to be affected on rumours that permission for import of cotton from India may be granted, particularly after the release of latest cotton production figures which are not encouraging.
Lower cotton prices impacted phutti (seed cotton) prices which are being quoted at lesser rates for both Sindh and Punjab varieties. Phutti prices declined to Rs2,700 to Rs3,200 per 40kg for Sindh and Rs2,700 to Rs3,300 per 40kg for Punjab.
Negative growth in Punjab cotton production disturbed the market and will affect total cotton production. The last phutti arrival figures showed improvement due to higher cotton production in Sindh.
However, reports of cyclone hitting western coast of India including Gujarat — a major cotton growing state — is a cause of concern for the cotton economy of both the countries.
In case a major disaster occurs and the cyclone causes extensive damage to standing cotton crop in Gujarat, it will not only hurt Indian textile industry but will also diminish the prospects of cotton exports to Pakistan, brokers said.
As a result, cotton prices in India are consistently moving up which would also have an adverse impact on Pakistani textile industry if they import cotton from India at higher rates, he added.
The other world leading cotton markets, however, closed easy including New York and Chinese markets.
The Karachi Cotton Association (KCA) spot rates were unchanged at overnight level.
The following deals were reported to have changed hands on ready counter: 1,000 bales, Rohri, at Rs6,450 to Rs6,650; 1,200 bales, Saleh Pat, at Rs6,500 to Rs6,700; 1,600 bales, Liaquatpur, at Rs6,800 to Rs6,900; 1,800 bales, Khanpur, at Rs6,850 to Rs6,900; 200 bales, Hasilpur, at Rs6,800; 1,000 bales, Mirpur Diwan, at Rs6,750; 400 bales, Ahmedpur East, at Rs6,700; 1,800 bales, Bahawalpur, at Rs6,500 to Rs6,600; 400 bales, D G Khan, at Rs6,600; 600 bales, Rajanpur, at Rs6,600; 600 bales, Jalalpur, at Rs6,575; 800 bales, Yazman, at Rs6,500; 400 bales, Haroonabad, at Rs6,000; and 2,000 bales, Layyah, at Rs5,600 to Rs6,000.