KARACHI, Aug 13: Amid sustained buying from spinners, the cotton market remained steady where prices moved higher on fear of short crop.
It is encouraging that current monsoon rains spell has so far caused no major damage to standing cotton crop in Sindh and Punjab.
But it is being feared that more rains and expected floods may damage cotton crop.
Nevertheless, excessive moisture created by heavy rains has affected cotton quality which is a semi-draught crop.
As a result, floor brokers said phutti (seed cotton) prices came under pressure and finished lower in the range of Rs2,800 to Rs2,900 per 40kgs as against Rs3,000 to Rs3,100 being quoted two weeks back.
However, lower world cotton crop production estimates for this year generated renewed buying from needy mills and some exporters who were eager to replenish their stocks at prevailing prices.
Weather pundits forecast heavy rains next month, and there is general fear that this may damage standing crop and create shortage of raw cotton in the country.
Consequently, a segment of millers preferred building their stocks which pushed prices higher.
The Karachi Cotton Association (KCA) spot rates were increased by Rs50 per 37.324kg at Rs6,705.
The world cotton market also remained firm where New York cotton finished higher for all future contracts.
Trading on ready counter remained fairly high where most of the deals transpired at higher rates.
The following deals were reported to have changed hands on Tuesday: 2200 bales from station Shahdadpur done between Rs6675 and Rs6700, 1600 bales from Tando Adam done at Rs6675 to Rs6700, 2000 bales from Sanghar done at Rs6675 to Rs6700, 2000 bales from Mirpurkhas done at Rs6675 to Rs6700, 1000 bales from Hyderabad done at Rs6675 to Rs6700, 2000 bales from Burewala done at Rs6700, 600 bales from Kabbirwala done at Rs6700, 400 bales from Melsi done at Rs6700, 400 bales from Multan done at Rs6700 and 200 bales from Bahawalpur done at Rs6700.