On Tuesday, November 7, 2017 the cotton buying continued unabated on as the spinners rushed for quality lint. As a result, cotton prices moved on the higher side as most of the deals were finalized close to three-month high level. This shows as if there is an end to the hyperactive buying because of the fears over the quality of lint and also due to the uncertainty over the actual and usable quantity of the current season’s crop.
The fog and that of the high moisture content in the air have had a negative impact on the standing cotton crop where the flowering of the plants is absorbing the moisture and is thus resulting in the damage of the fiber/ lint. The shortage caused by slow movement of phutti (seed cotton) and cotton picking due to smog and fog is a major factor for pushing prices further up. Most of the deals were of large size which indicated that spinners were not ready to take any risk.
While on the other hand speaking about the bigger picture, the Cotton Corporation of India (CCI) has so far procured around 40,000 bales (each bale of 170kg) against its target of 10 million bales. However, Indian cotton prices moved lower between Rs100 to Rs300 per candy (356kg). The Chinese and New York cotton markets closed steady as no major development took place to impact the current trend.
The Karachi Cotton Association (KCA) spot rates were firm at overnight level. The following major deals were reported to have materialised on ready counter: 1,000 bales, Liaquatpur, at Rs6,600; 3,000 bales, Khanewal, at Rs6,600 to Rs6,650; 400 bales, Muhammadpur, at Rs6,700; 800 bales, Khanpur, at Rs6,700; 800 bales, Fazilpur, at Rs6,700; 1,400 bales, Fazilpur, at Rs6,700; 1,400 bales, Rajanpur, at Rs6,700; 4,800 bales, Rahimyar Khan, at Rs6,700; 800 bales, Mirpur Mathelo, at Rs6,600; 1,200 bales, Faqirwali, at Rs6,350 to Rs6,400; 3,600 bales, Haroonabad, at Rs6,300 to Rs6,475; 1,600 bales, Chishtian, at Rs6,360 to Rs6,400; 1,600 bales, Vehari, at Rs6,350 to Rs6,400; 2,400 bales, Fort Abbas, at Rs6,400 to Rs6,500; 800 bales, Yazman, at Rs6,550 to Rs6,600; 1,600 bales, Shujabad, at Rs6,600; 600 bales, Sadiqabad, at Rs6,600 to Rs6,700; 1,600 bales, Mianwali, at Rs6,500 to Rs6,600; and 1,054 bales, Khadro, at Rs5,800.