Renewed buying interest seen at cotton market as prices low

Low cotton prices attracted many small spinners who mostly depend on short covering to meet their day to day demand. As a result renewed buying interest was seen on Tuesday at the Pakistan cotton market.

Phutti (seed cotton) prices also came down and were being quoted in the range of 3,300 to 3,350 per 40 kilograms. However, reports from cotton fields suggested that very little phutti has left for picking.

Brokers said that leading spinners are currently preoccupied in payments against their imports and were conspicuous by their absence.

Big spinners have so far booked around 2.2 million to 2.3m bales from different countries, including the United States, South Africa and Australia.

Meanwhile, reports were circulating in the trading ring that the government has allowed cotton imports through the Wagah border will greatly benefit Punjab’s millers.

Major deals to have changed hands on the ready counter were: 400 bales from Bhakkar at Rs6,450, 200 bales from Mianwali at Rs6,800, 2,400 bales from Kabirwala at Rs6,900, 400 bales from Rahimyar Khan at Rs6,000, and 600 bales from Hasilpur at Rs6,900 to Rs6,925.

However, the Karachi Cotton Association left its spot rates unchanged.