KARACHI: Buyers rushed to replenish their stocks on falling cotton prices as higher phutti (seed cotton) arrivals continue to exert pressure on lint prices.
The world cotton markets are under pressure after China last week announced to cut its import quota and ensured to supply cotton to mills from domestic stocks.
As a result, almost all leading world markets including the US, Argentina and India came under pressure because China had been a major buyer of cotton and cotton yarn from world markets.
Due to panic-selling from ginners, lint price crashed down by Rs500 per maund during the week. The higher phutti arrivals pushed lint prices in Sindh to Rs5,000 to Rs5,100 and phutti lost Rs350 per 40kg to Rs2,450 to Rs2,550.
The Punjab variety phutti was quoted even lower owing to higher moisture content caused by heavy rains and floods. The phutti prices came down in the range of Rs2,300 to Rs2,450 per 40kg whereas lint prices between Rs5,200 to Rs5,275 per maund.
The New York cotton witnessed recovery where all the futures slightly regained their overnight losses.
The Karachi Cotton Association (KCA) spot rate remained unchanged at previous level.
The following major deals were made on ready counter: 1,000 bales Shahdadpur at Rs5,100, 2,000 bales Sanghar at Rs5,100, 600 bales Pak Pattan at Rs5,200, 400 bales Shahpur Chakar at Rs5,100, 400 bales Jhole at Rs5,100, 600 bales Sharifabad at Rs5,200, 800 bales Khanewal at Rs5,200 to Rs5,300, 600 bales Mian Channu at Rs5,250 to Rs5,310.
The following are Saturday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/16” micronair value between 3.8 to 4.9 NCL.