KARACHI, Sept 20: Cotton market remained under pressure on Tuesday as prices were quoted lower by Rs300 to Rs500 per maund on renewed selling by ginners on reports of higher arrival of phutti at the ginneries.
Most of the deals, both in Sindh and Punjab varieties, were finalised around Rs6,800 per maund although some fine types were traded higher between Rs7,000 and 7,200.
Apart from local sale and falling mills demand, another contributory bearish factor was a steep decline in New York cotton futures which were quoted well below the limit-fall, five cents for both the ruling October and forward December contracts at 104.08 and 1205.52 cents per lb, respectively.
Floor brokers said that prices could ease further lower in sympathy with New York cotton futures which are now under speculative squeeze by some leading bears.
The New York cotton futures appear to be heading below the level of 100 cents per lb during the current week and could well mean further pressure on local prices, they said.
The perception of cheaper imports may force some spinners and mills for foreign stuff, some spinners said, adding any further fall in the mills demand would push prices of local lint further higher.
And added to this would be higher phutti arrival in ginneries as growers too are uncertain about the future price outlook and dumping of the commodity in ginneries, both on fixed and unfixed prices.
Official spot rates were lowered by Rs300 per maund at Rs7,000 but most of the deals in the ready section were done well below it.
The following deals were reported by the Karachi Broker Forum:
SINDH TYPE: 800 bales, each Khairpur and upper Sindh at Rs7,000 to Rs7,200; 200 bales, Kotri at Rs6,600 and Tando Mohammad Khan at Rs6,000.
PUNJAB VARIETY: 200 bales, each Kassowal, Mongi banglow, Theng More, Hasilpur and 400 bales each, Chichawatni, Khanewal, at Rs7,000, 400, 200 bales, each Multan, Chistian, Dunyiapur, Bahawalpur, Bahawalnagar, Burewala, Faqirwali, Sahiwal, Vehari at Rs6,800 and 400 bales, Bakhar at Rs6,800 to Rs6,900.