KARACHI: Brisk activity was witnessed on the cotton market on Thursday as buyers rushed to negotiate big lot deals in front of rapidly depleting cotton stocks with ginners.
At the outset there was strong buying interest from many spinners who were eager to replenish their stocks. There was stiff buying competition between some spinners who were running short of stocks.
Though there was no such development which could have influenced trading except that delay in arrivals of next crop coupled with very little stocks left with ginners created panic buying from some spinners, brokers said.
Consequently, spate of buying orders from spinners was witnessed which kept cotton prices on ready counter on the higher side. But much of the activity, however, remained around quality lint, brokers added.
According to reports reaching from Sindh cotton fields, some sowing has started in the lower parts of the province. But in Punjab, sowing is delayed because of rains and partly due to ongoing wheat harvesting.
Reports from India suggested that there was steep fall in phutti (seed cotton) arrivals and only 251,000 bales reached ginneries up to April 5, a year-on-year fall of 700,000 bales. India last year produced around 30.65 million bales; this year’s production is estimated at 30.15 million bales, brokers said.
The Karachi Cotton Association (KCA) raised its spot rates by Rs50, to Rs5,250 per maund. Major deals on ready counter were: 456 bales from Jahanian (at Rs5,000 per maund), 400 bales Haroonabad (Rs5350), 1,700 bales Mohammadpur Diwan (Rs5,400), 1,400 bales Rahimyar Khan (Rs5,500) and 4400 bales Khanpur (Rs5,600) (conditional).
The world cotton markets moved lower where all the New York cotton futures closed easy.