KARACHI: Trading activity on the cotton market suddenly become brisk as phutti (seed cotton) arrival gained momentum on Monday. Early in the day prices remained on the higher side but towards closing stages there was some profit selling.
The spinners were at the forefront of buying activity as they strived hard to cover up their positions on higher availability of quality cotton. Most of the deals were finalised on week-end rates. However, towards closing stage, prices came under pressure.
Phutti prices also remained on the higher side and closed at last week’s rates. However, reports of smooth flow of phutti from Sindh cotton fields pushed prices lower.
According to market reports, phutti and cotton prices are likely to come under pressure in the coming days as arrival of phutti from Punjab gains momentum.
On Monday, cotton prices generally remained above Rs9,000 per maund while phutti prices also stood on the higher side with Punjab quality being quoted between Rs3,800 to Rs4,300 per 40kg and around Rs4,100 to Rs4,300 per 40kg for Sindh.
The world markets gave mixed trend with Chinese and Indian cotton closing steady.
The Karachi Cotton Association (KCA) spot rates were steady at week-end level.
The following deals were reported to have changed hands on ready counter:
1,000 bales, station Shahdadpur, at Rs9,300 to Rs9,400; 2,000 bales, Tando Adam, at Rs9,300 to Rs9,400; 1,200 bales, Sanghar, at Rs9,300 to Rs9,375; 1,000 bales, Hyderabad, at Rs9,300 to Rs9,400; 200 bales, Shahpur Chakar, at Rs9,300; 200 bales, Khanewal, at Rs9,450.