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KARACHI: Prices on the cotton market came under pressure on Thursday as activity remained restricted amid record phutti arrivals during the outgoing fortnight (Oct 15-31).
Barring short covering from spinners to meet their near-future needs, the market was devoid of activity. The underlying sentiment was also easy and uncertain.
Floor brokers said the situation has suddenly changed and reports expected bumper cotton this season has further put pressure on lint prices. Fears are growing that the new situation would further result in huge losses to growers who had been already complaining of poor return on their produce.
If the current flow of phutti (seed cotton) from cotton fields into ginners continues for another couple of fortnights, it would mean that the crop size would be over 15 million bales, brokers said.
Since China is not active in world cotton markets and supplying cotton to its industry from its domestic stocks, prices are under pressure world over. The New York cotton moved lower where all the future contracts closed with fresh falls.
The Karachi Cotton Association (KCA) cut its spot rates by Rs50 to Rs5,100 per maund.
The following major deals changed hands on ready counter: 6,000 bales Khairpur at Rs5,100 to Rs5,125, 2,000 bales upper Sindh at Rs5,100 to Rs5,200, 1,200 bales Hasilpur at Rs5,125, 1,200 bales Haroonabad at Rs5,125 to Rs5,175, 1,000 bales Faqirwali at Rs5,125 to Rs5,150, 1,000 bales Khanewal at Rs5,200, 3,400 bales Faizpur at Rs5,200, 2,000 bales Rahimyar Khan at Rs5,200 to Rs5,250, 3,000 bales Rajanpur at Rs5,225 to Rs5,250, 2,400 bales Alipur at Rs5,250, 1,600 bales Shadan Lund at Rs5,250, and 1,400 bales Mianwali at Rs5,250.
The following are Thursday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/16” micronair value between 3.8 to 4.9 NCL.
Published in Dawn, November 7th, 2014
