Falling lint prices attracted strong buying from spinners and exporters yesterday amid indications that the crop size could be much larger than government’s estimates as higher flow of phutti (seed cotton) continues to reach ginneries.
Floor brokers said depressed cotton prices world over are also keeping pressure on domestic markets. A large number of deals on ready counter were done below Rs5,000 a maund.
The Trading Corporation of Pakistan’s (TCP) procurement drive has yet to influence the cotton trade, brokers said.
Though under standard operating procedures (SOPs) laid down by the TCP the ginners must give different packing for bales weighing more than 170kg, lint prices have failed to rise.
The objective of having different packing is to ensure that bales made out of new phutti and purchased by ginning factories at officially fixed higher rates is procured by the TCP, brokers said.
