Renewed buying on cotton market KARACHI: The last four days’ downward drive in cotton prices came to a halt on Friday, partly due to renewed buying interest at the lower level and a recovery in global markets.
The activity, however, remained restricted as most markets in Punjab on Friday stay closed. Though the flow of phutti (seed cotton) in Sindh continues to be normal, moisture content in phutti due to recent rains has raised questions about the quality of cotton.
As a result, spinners were generally reluctant to enter into big lot deals owing to quality constraints. Recent rains have mostly affected cotton crop in Sindh because the crop is at flowering stage.
On the other hand, rains in Punjab are reported to be beneficial for the standing cotton crop as it is still at growing stage. However, brokers believed that flow of phutti is going to improve within the next fortnight which will improve trading volume and also increase the availability of quality cotton.
Meanwhile, India has given incentives to its apparel and garment sectors in order to increase exports, whereas the local industry continues to struggle for getting zero-rating status.
Most of the leading world cotton markets after long spell of downward trend witnessed recovery under the lead of New York cotton.
The Karachi Cotton Association left its spot rates unchanged. Major deals on the ready counter were: 200 bales from Sanghar (at Rs6,650 a maund), 200 bales Tando Adam (Rs6,800), 200 bales Chodgi (Rs6,800), 200 bales Pithoro (Rs6,850), 600 bales Depal Pur (Rs6,900), 200 bales Samundri (Rs6,900), 200 bales Alipur (Rs6,950) and 150 bales Sahiwal (Rs7,000).