KARACHI: Intense buying from spinners kept cotton prices on the higher side on Friday. The undertone remained steady and outlook bullish.
There was strong buying from the start of the proceedings as spinners rushed back to get hold of any deal coming their way. However, short supply of quality lint owing to limited stocks held by ginners restricted activity, brokers said.
Since arrivals from the next crop are four to five months away, there is a panic buying from spinners at present.
The sudden change in global scenario of cotton economy, particularly with renewed demand for cotton yarn and fabrics, also triggered buying.
Even low-grade cotton was being eagerly purchased and stocks held by ginners are rapidly declining. In another major development, the state-owned Trading Corporation of Pakistan (TCP) for the first time this season has entered trading through the Karachi Cotton Association (KCA) ready counter.
The short cotton crop harvested this season created space for the TCP which sold 400 bales at Rs5,610 to Rs5,710 per maund.
Major deals on ready counter were: 4,700 bales from Tando Adam (Rs4100 to Rs4900 per maund), 2000 bales Shahdadpur (Rs4500 to Rs4900), 200 bales Sanghar (Rs4000), 200 bales Mehrabpur (Rs5185), 400 bales TCP (Rs5610 to Rs5710), 200 bales Layyah (Rs5000), 400 bales Bakkhar (Rs5400), 600 bales Bahawalpur (Rs5500) and 200 bales Rajanpur (Rs5800).
Meanwhile, most world cotton markets remained steady but New York cotton came under profit-selling where maturing future contracts closed easy and far-off futures recorded modest gains.