Steady conditions prevail at cotton market

Panic buying of the past two days was no longer evident as both buyers and sellers seemed to have rationalised their approach and steady conditions prevailed on the cotton market on Wednesday as buyers indulged in short covering for their near future demands.

Pakistan Central Cotton Committee’s (PCCC) review has set aside all fears and apprehensions that were afloat about the size of the crop in the light of heat wave, smog and fog impact, said Naseem Usman, chairman Karachi Cotton Brokers’ Forum.

Rising cotton prices also impacted phutti (seed cotton) prices which rose for both Sindh and Punjab varieties. Phutti prices rose to Rs2,800-3,300 for Sindh variety and to Rs2,800-3,450 per 40kg for Punjab quality. Trading in spot deals remained fairly brisk, with prices remaining steady and close to overnight level.

Normal trading was witnessed at the Karachi Cotton Exchange on Wednesday, while spot rates remained unchanged while, at the Karachi Cotton Association (KCA) also spot rates were unchanged at overnight level.

The major deals reported to have changed hands on ready counter were: 1,600 bales, Ghotki, at Rs6,800 to Rs6,900; 1,600 bales, Daharki, at Rs6,900; 800bales, Rohri, at Rs6,550 to Rs6,600; 800 bales, Saleh Pat, at Rs6,550 to Rs6,600; 1,000 bales, Khairpur, at Rs6,450 to Rs6,500; 800 bales, Mirpur Mathelo, at Rs6,800 to Rs6,900; 5,200 bales, Rahimyar Khan, at Rs6,900 to Rs6,950; 800 bales, Sadiqabad, at Rs6,950; 3,200 bales, Mianwali, at Rs6,600; 1,000 bales, Vehari, at Rs6,400; 800 bales, Haroonabad, at Rs6,175 to Rs6,550; and 800 bales, Sadiqabad, at Rs6,950.

On global front, the world leading cotton markets gave mixed trend while the India cotton was under pressure on higher production report.

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