KARACHI, Sept 21: Steady conditions prevailed on cotton market on Saturday.
Some spinners and exporters indulged in short-covering to meet their near future requirement.
However, short supply of phutti (seed cotton) is keeping raw cotton prices firm, particularly when the crop size is yet to be determined.
The Cotton Crop Assessment Committee (CCAC) meeting on Tuesday is expected to further downward revise the cotton production which would mean wider gap between demand and supply.
Floor brokers said that pest attack in some cotton growing belts in Sindh and adverse impact of heat wave on cotton plants in the Punjab prior to the start of monsoon rains could result in further lowering of cotton production.
It is being estimated that the country during current season may have to import around 2.5 to 3 million bales to meet the shortfall and this would put heavy burden on country’s foreign exchange reserves.
Barring far off contracts, all the other future deals on New York cotton market finished lower on slow demand in the world market.
The Karachi Cotton Association (KCA) spot rates stood steady and trading on ready counter was moderate.
The following major deals were reported on ready counter on Saturday: 1000 bales from Shahdadpur done at Rs6850 to Rs7000, 1000 bales from Tando Adam done at Rs6950 to Rs7000, 1600 bales from Mirpurkhas done at Rs6950, 800 bales from Nawabshah done at Rs7000, 1000 bales from Burewala done at Rs6950 to Rs7000, 800 bales from Faqir Wali done at Rs7000.