KARACHI: Buying spree continued on the cotton market on Tuesday as spinners and some exporters remained in the forefront to replenish their stocks at current prices.
The high cotton prices in the world markets have disturbed import parity, therefore, millers are now keen to build up their stocks from local sources, brokers said.
However, shortage of quality lint is a cause of concern for many millers who still need substantial quantity of cotton to see the current season through. The depleted stocks held by ginners and higher consumption indicate that demand would sustain for several weeks more.
Phutti (seed cotton) arrivals have also dwindled because the third and the last picking is heading towards a close. According to private estimates, production in current season (2014-15) could reach around 14.8 million bales.
Meanwhile, prices on world cotton markets are still on the higher side but New York cotton for second consecutive session witnessed profit selling. Barring maturing March contract which ended with nominal gain, all the other future contracts closed lower.
The Karachi Cotton Association’s (KCA) spot rates remained unchanged.
Major deals finalised on ready counter were: 2,000 bales Sanghar at Rs4,700, 800 bales Rohri at Rs4,700 to Rs5,000, 500 bales Kabbirwali at Rs4,800, 1,000 bales Khanewal at Rs4,800 to Rs5,100, 600 bales Haroonabad at Rs4,850, 800 bales Mianwali at Rs5,050, 1,000 Tonsa Sharif at Rs5,100, 1,000 bales Shadan Lund at Rs5,100, 1,643 bales Sadiqabad at Rs5,100, 2,263 bales Liaquatpur at Rs5,100, 2,000 bales Khanpur at Rs5,125, 2,000 bales Khanpur at Rs5,125, 2,500 bales Rahimyar Khan at Rs5,125 to Rs5,200 and 800 bales Dera Ghazi Khan at Rs5,150.
Published in Dawn February 25th , 2015