Renewed buying interest witnessed on cotton market

The cotton market on Tuesday recorded moderate to active trading with readily available lint allowed steady flow of buying orders, helping many spinners who rushed back to replenish their stock. Renewed buying interest was witnessed. However, due to shortage of quality lots many spinners were unable to get stocks of their choice.

The rising demand 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.

At 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.

While, normal trading was recorded at the Karachi Cotton Exchange on Tuesday, spot rates remained unchanged at Rs6,000/maund (37.324kg) and Rs6,430/40kg. Ex-Karachi rates also remained firm at Rs6,145/maund and Rs6,585/40kg after an addition of Rs145 and Rs155 as upcountry expenses, respectively.

A total of 21 transactions were recorded of around 15,000 bales at a price of Rs5,600 to Rs6,175/maund. Among them, notable deals were recorded from Sanghar, Tando Adam, Moro, Nawabshah, Khairpur, Rohri, Saleh Pat, Bahawalpur, Khanpur, Bahawalnagar and Rajanpur.

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.