Cotton market witnessed renewed buying interest

The cotton market on Tuesday witnessed renewed buying interest as spinners sought to replenish their stocks, paying premium price for good lint. Consequently, prices remained on the higher side discouraging buying at large scale.

Due to high cotton prices, phutti (seed cotton) prices moved higher and were being quoted in the range of Rs2,900-3,300 for Sindh quality and Rs3,000-3,400 for Punjab variety.

Higher cotton yarn prices were also adversely impacting yarn market as they threaten value-added textile industry’s viability.

At the Karachi Cotton Association (KCA) spot rates were steady at overnight level.

The following major deals reported to have changed hands on ready counter were 2,000 bales, Saleh Pat, at Rs6,550 to Rs6,800; 1,000 bales, Mianwali, at Rs7,000; 400 bales, Rahimyar Khan, at Rs7,000; 1,000 bales, Sadiqabad, at Rs7,000; 400 bales, Bahawalpur, at Rs6,600; 400 bales, Maroot, at Rs6,675; 6,000 bales, Khanpur, at Rs6,950; 600 bales, Mian Channu, at Rs6,550 to Rs6,600; 800 bales, Yazman, at Rs6,600; 600 bales, Fazilpur, at Rs6,950; and 400 bales, Sanghar, at Rs6,150.

However, trading could not expand due to shortage of quality cotton.

On the other side, exporters of textile goods are complaining that they have not received a single penny so far from the Rs180 billion incentive package annou¬nced in January this year.

The spinners are eagerly waiting for government’s decision of lifting import ban on Indian cotton. This will ensure early arrival of cotton from neighbouring country but also get cotton at competitive price with lesser freight charges.

On global front, world leading cotton markets were firm with New York witnessing some profit-selling after prices touched peak high level last week.