Trading activity continued to remain slow on the cotton market on Saturday with both buyers and sellers making every efforts to turn the prices in their favour. Most buying deals offered by spinners were not obliged by ginners who are holding back their stocks in the hope of a price rise.
Brokers said that the rapidly rising prices of phutti (seed cotton) are instrumental in pushing cotton prices higher which forced ginners to ask for higher price for cotton.
Floor brokers said that phutti prices have soared between Rs3,000 and Rs4,000 for Punjab variety and Rs2,800 and Rs3,500 for Sindh quality.
Slower phutti arrivals during outgoing fortnight (Dec 15 to Jan 1), as reported by Pakistan Cotton Ginners Association (PCGA), also influenced market, pushing cotton prices higher.
Though the duty-free access to EU market continues to be main driving force behind higher cotton and cotton yarn prices, large participation from Pakistan in Heimtextil fair in Frankfurt, Germany, from Jan 8 to 11 is also inducing sentiment, brokers said.
The following deals were reported to have transpired on ready counter on Saturday: 600 bales, Shahdadpur, at Rs6,500, 200 bales, Fort Abbas, at Rs7,050 and 200 bales, Rajanpur, at Rs7,100.
The Karachi Cotton Association (KCA) left its spot rates unchanged at the overnight level while and trading on the ready counter failed to pick up.
The Indian cotton market also came under slight pressure after the dollar gained strength against the Indian rupee.
The world cotton markets, however, turned easy where New York cotton finished lower for all the future contracts.
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