Prices steady amid short crop outlook

prices-steady-amid-short-crop-outlook

Prices steady amid short crop outlook KARACHI: Prices remained steady on the cotton market on Tuesday amid sustained buying from spinners who eagerly cover up their near future demand after the first report on phutti (seed cotton) arrivals showed a shortfall of 14 per cent over the corresponding period of last year.

It turned out to be a brisk activity amid bouts of panic buying from some needy spinners who have no stocks to see the forthcoming long closure of markets on account of Ashura.

The world cotton markets also remained steady with New York Cotton Exchange recovering part of the recent losses. The Chinese and Indian cotton also maintained firm posture, market sources said.

There are growing concerns over the short crop and some quarters believe that some drastic measures would be needed from the government to save cotton crop which last season witnessed a steep fall of up to 34pc (around five million bales).

Brokers say if the government does not come forward with a plan including imposing a ban on shifting to sugarcane the situation would further deteriorate and soon the country would become net importer of cotton.

The current heatwave in the cotton growing areas of Sindh and Punjab is a matter of concern and analysts believe that it is not only damaging to standing cotton crop but also helps in pest attack.

The KCA kept its spot rates unchanged at overnight level.

The following major deals were reported to have materialised on the ready counter: 1,000 bales, Tando Adam, at Rs5800 to Rs6,000, 1,000 bales, Sanghar, at Rs5,850 to Rs6,900, 1,000 bales, Shah­dad­­pur, at Rs5,900 to Rs6,000, 1,000 bales, Nawabshah at Rs6,100, 2,600 bales, Rohri at Rs6,150 to Rs6,200, 2,800 bales, Khairpur, at Rs6,175 to Rs6,190, 2,400 bales, Bure­wala, at Rs6,175 to Rs6,200, 1,600 bales, Chichawatni, at Rs6,200, 1,000 bales, Chistian, at Rs6,200, 1,200 bales, Khanewal, at Rs6,200, 1,000 bales, Rajanpur, at Rs6,200 and 600 bales, Yazman Mandi, at Rs6,200.

Source: http://www.dawn.com/news/1288003/prices-steady-amid-short-crop-outlook

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