KARACHI: Renewed buying interest was witnessed on the cotton market on Tuesday as many spinners rushed back to replenish stocks which helped stabilise prices.

Resumption of picking operations, improved phutti (seed-cotton) arrivals into ginneries after Ahusra holidays helped change the cotton trading outlook.

Readily available lint allowed steady flow of buying orders, helping the market record moderate to active trading. However, due to shortage of quality lots many spinners were unable to get stocks of their choice.

The rising demand also helped phutti prices stabilise in the range of Rs2,800-3,000 per 40 kg for both Sindh and Punjab varieties.

According to market reports, cotton prices could come under pressure once phutti arrival surges.

On the global front, Indian cotton prices suddenly dropped on reports of higher production figures. It was one of the biggest falls recorded in a single day as prices declined by Rs800 per candy (356kg). The last price quoted was Rs46,000 per candy.

New York cotton was steady and some profit selling was noted in late evening trading while Chinese cotton markets remained closed owing to Indepen­dence Day holidays starting from Oct 1 to 7.

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, Sanghar, at Rs5,600 to Rs5,800; 1,000 bales, Tando Adam, at Rs5,600 to Rs6,800; 800 bales, Moro, at Rs6,000; 1,000 bales, Nawabshah, at Rs6,000 to Rs6,075; 3,000 bales, Khairpur, at Rs6,075 to Rs6,100; 800 bales, Rohri, at Rs6,100; 800 bales, Saleh Pat, at Rs6,100; 600 bales, Khanpur, at Rs6,100; 800 bales, Bahawalpur, at Rs6,125; 600 bales, Bahawalnagar, at Rs6,125; 400 bales, Mailsi, at Rs6,125; 800 bales, Rajanpur, at Rs6,150 to Rs6,175; and 400 bales, Mohammadpur Dewan, at Rs6,150 to Rs6,175.

Published in Dawn, October 4th, 2017