KARACHI: Falling cotton prices attracted buying on Tuesday from some needy spinners who rushed to replenish their stocks.
Floor brokers said fall in US dollar’s value against the rupee forced many ginners to unload their stocks in a hurry because import parity of cotton improved.
According to market sources, a fall of Rs1.80 in dollar’s value during the last two days has made cotton import more feasible with a price fall of around Rs120 per maund.
However, the situation continued to be uncertain as buyers and sellers are confused over the rapid changes in the market behaviour. Due to short crop, cotton prices should have soared and activity should have been brisk, brokers said.
On the contrary, immediately after the release of latest phutti (seed cotton) arrivals figures last week, the market turned dull and gave dismal performance as buyers and sellers took to the sidelines.
The latest change in the exchange rate forced some ginners to dispose of their stocks on fears the industry may intensify imports. The Karachi Cotton Association (KCA) spot rates remained unchanged and New York cotton market gave mixed price trend.
Major deals on ready counter were: 600 bales from Tando Adam done at Rs5,000, 600 bales Rohri at Rs5,450, 1,000 bales Khairpur at Rs5,300 to Rs5,350, 500 bales Sakrand at Rs5,000, 600 bales Haroonabad at Rs5,200 to Rs5,300, 600 bales Fort Abbas at Rs5,300 to Rs5,350,400 bales Yazman Mandi at Rs5,365, 600 bales Sadiqabad at Rs5,600 and 800 bales Mianwali at Rs5,515 to Rs5,550.