KARACHI: The cotton prices on Wednesday remained steady amid strong demand for low and high-quality lint. However, the medium quality cotton could not attract any buying.
Floor brokers said that improved off-take of cotton yarn induced spinners to book big lot deals to meet their near-term requirements. The fast depleting stocks with ginners was a cause of concern for spinners who were running in short supply.
The world cotton market which witnessed some recovery in the last two sessions once again came under pressure on Wednesday on reports that China had increased its cotton cultivation area.
Besides, the Cotton Corporation of India having built huge cotton stocks has been disallowed by the Indian government from procuring more lint which depressed the prices on the world market. Slow global demand pushed cotton prices lower after mild recovery noted early this week.
Cotton analyst Waqas Alvi told Dawn that many small spinners who could not afford to import cotton were currently replenishing their stocks. Bouts of buying and selling kept the lint prices firm, but trade volume remained moderate due to short supply of quality lint, he added.
The New York Cotton Exchange closed lower for all the future contracts. The Karachi Cotton Association (KCA) kept its spot rates unchanged at overnight level.
The following deals were finalised on the ready counter: 200 bales, Rohri, at Rs5,150, 400 bales, Khanpur Mehar, at Rs5,350, 400 bales, Mirpur Kathilo, at Rs5,350, 1,400 bales, Ghotki, at Rs5,500 to Rs5,600, 800 bales, Nasilpur, at Rs4,600 to Rs5,300, 400 bales, Lodhran, at Rs5,050, 400 bales, Faqirwali, at Rs5,100, 1,200 bales, Mianwali, at Rs5,400 and 1,000 bales, Rahimyar Khan, at Rs5400.