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Cotton prices firm on sustained buying

Cotton prices firm on sustained buying

KARACHI: Sustained buying from spinners helped cotton prices stay firm on Friday. However, much of the trading activity remained around quality lint which was running in short supply.

Floor brokers said that slowdown in textile industry across the globe, coupled with internal factors, such as financial crisis facing the industry and high cost of doing business, depressed demand for cotton.

Moreover, import of huge quantity of cotton by big spinning groups is also dampening demand for local cotton.

The damage caused by heavy rains and floods in monsoon season last year did not only cause extensive damage to standing cotton crop but its quality was also affected to a greater extent, they added.

Though global cotton markets, including US, India and China are under pressure due to slow off-take of cotton, local market is comparatively keeping firm owing to short crop.

As current cotton season is coming to an end two months earlier and there is a long period of six to seven months for arrival of next crop, the needy spinners are replenishing stocks.

The Karachi Cotton Association (KCA) for the second consecutive session raised spot rates by Rs50 to Rs5,400 per maund.

The New York cotton market closed lower for third straight session where all the future contracts ended with fresh falls.

The following deals were reported to have changed hands on ready counter: 400 bales from station Daur (Rs5250), 400 bales from Saleh Pat (Rs5550), 600 bales from Mirpur Mathilo (Rs5600), 600 bales from Dharki (Rs5625), 600 bales from Ghotki (Rs5625), 600 bales from Khanpur Mehar (Rs5650), 600 bales from Mianchuno (low quality) (Rs4675), 600 bales from Haroonabad (Rs5400 to Rs5550), 600 bales from Mianwali (Rs5500 to Rs5600), 800 bales from Rajanpur (Rs5650) and 200 bales from Bahawalpur (Rs5650).

Courtesy : Dawn News



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