Renewed selling pressure on cotton market

KARACHI: Renewed selling pressure pushed cotton prices lower when trading resumed on Tuesday.

Higher phutti (seed cotton) arrival, coupled with falling prices in world cotton markets, adversely affected sentiment.

Though buying interest was shown by spinners, they restricted their activity to short term demand on anticipation that cotton prices would move lower the world over on higher production and lesser demand.

Floor brokers said phutti arrival gained momentum, but restricted demand from spinners and exporters is keeping cotton prices under pressure.

According to reports, presently leading cotton producing countries are faced with higher supplies of cotton and prices continue to remain under pressure. Besides, cotton yarn market is also showing lethargy as takeoff for yarn from weaving sector is slow.

The world cotton markets mostly closed easy where New York cotton moved lower for all future contracts.

The Karachi Cotton Association (KCA) spot rates were unchanged and trading on ready counter was fairly brisk as needy mills kept purchasing their near future demand.

The following major deals transpired on ready counter: 2200 bales from Khairpur done at Rs6775 to Rs6800, 1200 bales from upper Sindh done at Rs6775 to Rs6800, 1200 bales from Chichawatni done at Rs6725 to Rs6800, 1000 bales from Khanewal done at Rs6740 to Rs6775, 800 bales from Fort Abbas done at Rs6750 to Rs6800, 600 bales from Layyah done at Rs6790, 600 bales from Haroonabad done at Rs6800, 2000 bales from Bahawal Nagar done at Rs6800, 3000 bales from Rahimyar Khan done at Rs6850 to Rs6900, 1600 bales from Sadiqabad done at Rs6850 to Rs6900 and 1000 bales from Mianwali done at Rs6900 to Rs6950 and 400 bales from Rajanpur done at Rs6935