KARACHI: Prices remained depressed on the cotton market on Tuesday despite aggressive buying from spinners and exporters to replenish their stocks at current levels.

The prices remained under pressure mainly due to higher phutti arrivals into the ginneries during the last fortnight up to Nov 15.

Similarly, the higher production expected by most of the cotton-growing countries is keeping trade under pressure, with most of the world cotton markets recording fresh falls.

Floor brokers believed that the government had little role to play under free trade, and growers received better prices for their produce when the crop was short.

However, they said the situation had reversed this season as higher supply, due to better harvest by most of the cotton-producing countries, was depressing the prices the world over.

India alone would have exportable surplus of around 10 million bales while China – with huge buffer stocks – has been reluctant to enter the world market keeping prices under pressure, they added.

The New York cotton market moved lower where all the future contracts ended with fresh falls.

The Karachi Cotton Association (KCA) reduced its spot rate by Rs50 to Rs6,550 per 40 kgs. Trading on ready counter was fairly active.

The following deals are reported to have changed hands on ready counter on Tuesday: 800 bales, Khairpur, at Rs6,500, 1,600 bales from upper Sindh, at Rs6,500, 600 bales, Hasilpur, at Rs6,400-6,500, 1,400 bales, Haroonabad, at Rs6,415-6,560, 800 bales, Bahawalnagar, at Rs6,450, 1,200 bales, Faqir Wali, at Rs6,450, 600 bales, Mian Channu, at Rs6,600, 600 bales, Tonsa Sharif, at Rs6,600, 3,000 bales, Liaquat Pur, at Rs6,600, 2,000 bales, Rajanpur, at Rs6,700, 3,000 bales, Fazilpur, at Rs6,700-6,725, 3,400 bales, Mianwali, at Rs6,700-6,725, 1,000 bales, Rahimyar Khan, at Rs6,600, 1,000 bales, Sadiqabad, at Rs6,600 and 600 bales, Jalalpur, at Rs6,575.