KARACHI: Early gains on the cotton market on Wednesday flattened towards closing stages, influenced by major world markets which closed easy as correction and profit selling set in.
Floor brokers said that major world cotton markets came under profit selling which eroded big chunks of recent gains recorded after the US Agriculture Department put estimates of higher consumption against short supply of cotton this season.
However, during early trading cotton prices touched seasonal high of Rs7,125 per maund (around 38 kilograms).
However, after receiving reports of steep fall in world cotton prices, the market came under pressure towards closing stages and shed some initial gains, floor brokers said.
According to reports, the New York cotton market receded by 1.5 US cents per lb and Indian cotton prices closed lower between Rs1,000 and Rs1,500 per 345kg. Prices also dropped on the Chinese market.
The overall decline towards closing stages was reported to be around Rs500 per maund, a substantial fall in a single day. However, prices of phutti (seed cotton) remained steady.
Downpour in the Punjab is keeping growers and ginners concerned, whereas in Sindh the climate is normal in the absence of rains.
The Karachi Cotton Association raised its spot rate by Rs200, to Rs6,650 per maund.
Deals on the ready counter were: 2,000 bales from Hyderabad (Rs6,700 to Rs6,850), 1,400 bales Mirpur Khas (Rs6,750 to Rs6,850), 3,000 bales Sanghar (Rs6,750 to Rs6,850), 1,000 bales Shahdadpur (Rs6,800 to Rs6,850), 2,000 bales Tando Adam (Rs6,800 to Rs6,900), 200 bales Haroonabad (Rs7,125), 600 bales Khanewal (Rs7,000), 400 bales Chichawatni (Rs7,000) and 400 bales Mian Channu (Rs7,000).