KARACHI: Renewed buying interest was witnessed on the cotton market
on Tuesday as spinners sought to replenish their stocks, paying premium price
for good lint. However, trading could not expand due to shortage of quality
cotton. Consequently, prices remained on the higher side which also discouraged
buying at large scale.
Due to high cotton prices,
phutti (seed cotton) prices moved higher and were being quoted in the range of
Rs2,900-3,300 for Sindh quality and Rs3,000-3,400 for Punjab variety.Higher
cotton yarn prices were also adversely impacting yarn market as they threaten
value-added textile industry’s viability.
Meanwhile, exporters of textile goods are complaining that they have not
received a single penny so far from the Rs180 billion incentive package announced
in January this year.The spinners are eagerly waiting for government’s decision
of lifting import ban on Indian cotton.This will ensure early arrival of cotton
from neighbouring country but also get cotton at competitive price with lesser
freight charges.
The world leading cotton markets were firm with New York witnessing some
profit-selling after prices touched peak high level last week.The Karachi
Cotton Association (KCA) spot rates were steady at overnight level.The
following major deals were reported to have changed hands on ready counter:
2,000 bales, Saleh Pat, at Rs6,550 to Rs6,800; 1,000 bales, Mianwali, at
Rs7,000; 400 bales, Rahimyar Khan, at Rs7,000; 1,000 bales, Sadiqabad, at
Rs7,000; 400 bales, Bahawalpur, at Rs6,600; 400 bales, Maroot, at Rs6,675;
6,000 bales, Khanpur, at Rs6,950; 600 bales, Mian Channu, at Rs6,550 to
Rs6,600; 800 bales, Yazman, at Rs6,600; 600 bales, Fazilpur, at Rs6,950; and
400 bales, Sanghar, at Rs6,150.
Source: Business Recorder, Pakistan Wednesday, 29 November 2017