Cotton prices continue to remain on higher side over dwindling cotton stocks

Slow trading was witnessed on Friday on cotton market as cotton prices continued to remain on the higher side with dwindling cotton stocks and spinners kept looking for quality lint which is running in short supply.

The Karachi Cotton Association (KCA) left its spot rates unchanged.

The textile industry, particularly the spinning sector expressed concern over the long delay in the arrival of next crop and falling cotton stock.

Ginners are reluctant to enter into deals at this stage in anticipation of getting higher price. However, spinners on their part are looking at export parity of cotton yarn before committing higher price for the commodity.

Cotton analyst, Naseem Usman said the other factor, which is playing a role in persistent rise, is delay in sowing, the buyers in a panic mood making deals as much as they can.

In the ready session, over 8,000 bales of cotton changed hands between Rs 5000 and Rs 5540.

The following deals were finalised on ready counter: 200 bales from Khadro done at Rs4400, 400 bales Tando Adam at Rs4900, 1000 bales Ghotki at Rs5400, 1000 bales Haroonabad at Rs5200 to Rs5300, 400 bales Yazman Mandi at Rs5225 and 2000 bales Bahawalpur at Rs5400 to Rs5500.

On the global front, the New York cotton market came under profit-selling where all the future contracts ended with modes losses. The losses came after the US Department of Agriculture (USDA) released its monthly supply and demand report, which showed a rise in its forecast for US cotton stocks for the 2014/15 crop year, which ends in July, to 4.4 million 480-pound bales, up from 4.2 million in its March forecast.