KARACHI: Steady conditions prevailed on the cotton market on Thursday as buyers remained in the forefront. However, short supply of quality lint restricted trading activity which remained fairly moderate.
The trading resumed on overnight bullish trend but due to fast depleting cotton stocks with ginners the activity could not expand and remained around limited deals of quality lint.
The rising trend in leading world cotton markets, particularly in New York cotton where cotton prices in a week rose by four to five US cents per lb, induced sentiment amid reports that there would be higher demand for cotton next season.
Moreover, revival of buying interest in yarn and fabrics also encouraged spinners to build up their cotton stocks, brokers said. The most encouraging development on domestic front had been good orders of around $225 million received by towel industry in the recently concluded Texpo-2016, they added.
According to market assessment, around 350,000 bales are held by ginners, whereas demand for quality cotton from spinners continues to gain momentum ahead of long period of around four to five months before the arrival of new cotton crop.
Though ginners were generally reluctant to sell their stocks at this juncture in the hope of getting better prices in the coming days, some deals were finalised on higher rates, broker said.
The Karachi Cotton Association (KCA) also raised its spot rates by Rs50 to Rs5,450 per maund. Major on the ready counter were: 400 bales from Ghotki (at Rs5,500 per maund), 200 bales Burewala Rs5,550, 1,000 bales Rahimyar Khan (Rs5,700) and 400 bales Yazman (Rs5,700). The world cotton markets moved higher where New York cotton for third consecutive session closed higher for all future contracts.