September 18, 2010Print : Business
KARACHI: Cotton market witnessed brisk trading activity on Friday because of ample supplies of the commodity, dealers said.
More than 20,000 bales of raw cotton were traded in the local market because of the sunny weather conditions, which lured buyers to make purchases as cotton crop had suitable moisture retention during the day.
Spot rates of the Karachi Cotton Association held steady at Rs6,850 per maund and Rs7,341 per 40kg for average quality lint. However, seedcotton (Phutti) remained stable at Rs3,400 and Rs3,300 per 40kg in Sindh and Punjab, respectively.
“Commodity prices may edge up in the coming days as many transporters refused to load raw cotton from many areas of Sindh due to violence following the assassination of senior Muttahida Qaumi Movement leader Imran Farooq in London,” said Shakeel Ahmad, a Karachi-based cotton trader.
“Ginners have sufficient stockpiles at their factories that they will want to dispose of as soon as the political climate of Sindh normalises.”
He said despite the tension in the main business hub, the cotton market gained momentum in both Punjab and many cities of Sindh and the ready business of the market crossed 20,000 cotton bales, owing to appropriate supplies in the wake of favourable weather in the country.
The market turnover swelled to 20,400 bales of raw cotton (of 170-kg each), including 2,200 bales from Burewala; 1,800 bales in mill-to-mill deals; 1,400 bales from Chichawatni; 1,000 bales from Khanewal; 800 bales from Hasilpur; 600 bales from Samandari; 400 bales each from Sahiwal and Pir Mehal; 200 bales each from Haroonabad, Bahawalnagar, Arifwala, Fazilpur, Mureedwala, Ghaziabad and Tandlianwala varying between Rs6,750 and Rs6,900 per maund and 3,200 bales from Tando Adam; 2,600 bales from Shahdadpur; 2,000 bales from Mirpurkhas; 1,200 bales from Khipro; 600 bales from Mehrabpur; and 200 bales each from Hyderabad, Hala and Shahpur Chakar, ranging between Rs6,800 and Rs7,000 per maund.
Moreover, in the international market, the US cotton gained as cotton futures for October and December shot up 2.12 and 2.14 cents to 94.93 and 95.76 cents per pound at the International Commodity Exchange, New York.