KARACHI: Restricted activity was witnessed on the cotton market on Thursday as an acute shortage of the commodity forced spinners to compromise on lint quality and enter into deals.
The highlight of the trading session was a big deal of 13,000 bales at Sadiqabad. Market reports suggested that ginners are holding around 275,000 bales from current season cotton stocks. However, needy spinners are booking small lot deals of inferior quality cotton to meet their demand.
Shortage of irrigation water and delay in sowing is a cause of concern for market players. According to market reports an advanced deals of phutti (seed cotton) of 10 trucks load from Shahdadpur for June 15-30 delivery was finalised at a high rate of Rs3,620 per 40kg.
This means that cotton prices for next cotton crop would be at around Rs8,000 per maund, brokers said.
The world leading cotton markets were firm, with Indian cotton closing Rs100 to 200 higher and New York cotton also closed firmer for all future contracts except maturing May contract.
The Karachi Cotton Association (KCA) spot rates were firm at overnight level.
Dawn reports the following deals to have changed hands on ready counter: 400 bales, station Ghotki, at Rs7,300; 275 bales, Rahimyar Khan, at Rs7,300; 800 bales, Khanewal, at Rs7,800; and 13,000 bales, Sadiqabad, at Rs7,550 to Rs7,575.
