KARACHI: Prices came under pressure on the cotton market on Monday on higher phutti (seed cotton) arrival reports and landing of imported cotton.
Floor brokers said that the week-end ‘downward trend’ noted in cotton prices intensified when trading resumed on Monday as some ginners having ‘long’ position rushed to unload their stocks on fear of further fall in prices.
The phutti arrival report, going to be released in next couple of days by ginners’ body, will determine future course of cotton prices, particularly when a huge quantity of cotton is also being imported by spinners, brokers said.
However, market reports suggested that the arrival of phutti has improved substantially and situation is going to stabilise once the report is made public.
The huge cotton quantity being imported by spinners is definitely going to have its impact on local market, they added.
Consequently, heavy selling from ginners pushed prices lower, indicating that the trend would continue for a couple of more sessions till the release of upcoming phutti arrival report.
As a result of this, the Karachi Cotton Association (KCA) also lowered the spot rates by Rs50 to Rs 5,450 per maund.
The following major deals were reported to have changed hands on ready counter: 1600 bales from station Mirpurkhas finalised at Rs4600 to Rs5000, 1000 bales from Tando Adam Rs4750 to Rs5000, 1600 bales from Shahdadpur Rs4750 to Rs5000, 1200 bales from Sanghar Rs5000 to Rs5100, 3000 bales from Khairpur Rs5500 to Rs5550, 3000 bales from upper Sindh Rs5500 to Rs5550, 1000 bales from Layyah Rs5650 to Rs5700, 1000 bales from Sadiqabad Rs5650 to Rs5700, 1200 bales from Fazilpur Rs5600 to Rs5650, 1200 bales from Bahawalpur Rs5600 to Rs5650, 2000 bales from Rajanpur Rs5600 to Rs5650 and 1000 bales from Ahmedpur Rs5585 to R5650.