KARACHI, Aug 10: Trading activity on the cotton market on Friday remained insipid as spinners and mills stayed away and did not bid at the higher asking prices. Floor brokers said the delivery problems owing to persistent rains for the last two days throughout the Sindh cotton belt was one of the main factors behind the slowdown in physical activity.

The price outlook for the Sindh lint appears to be bullish as arrivals of phutti into the ginneries have almost dried up as picking operations of phutti remain suspended because of heavy rains, they said, adding” rain water damages the quality of lint at the ginning stage”.

According to them picking operations are expected to be resumed after a week and that too if there was no fresh rain during the next couple of days.

While the business in the central Punjab cotton belt remained closed being weekend and ginners did not indulge in selling, they said.

However, reports reaching here from the Multan trading centre indicate some of the Punjab based textile mills purchased modest quantity of lint around Rs3,400 per maund for delivery in next two days.

According to market sources southern and central Punjab belts did not receive any rain during the last couple of days and picking operations of phutti there were normal and trading activity was expected to pick up.

In the ready section, Punjab ginners reported stray business around Rs3,400 and slightly below this rate depending on the quality of lint.

Most of the orders from the Punjab spinners, notably Faisalabad and other centres, but Sindh spinners did not make fresh commitments owing to delivery problems.

The following are Friday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Rate for Ex-Gin Price Up-country Spot rate

Expenses Ex-Karachi

37.324 kgs 3,150 50 3,200.00

Equivalent

40 kgs 3,376 50 3,426.00