KARACHI, Nov 24: Slow trading activity was witnessed on the local cotton market owing to cautious buying by spinners amid slowdown in world economies.

Besides, ginners are not ready to part ways with their stocks in the hope of reaping big profit margins when the Trading Corporation of Pakistan (TCP) steps in for procurement.

Most of the deals transpired at lower prices with spot prices also adjusted downward by the Karachi Cotton Association (KCA). Floor brokers said reduced off-take of yarn and fabrics is also forcing spinners to take a cautious approach to avoid large inventories.

“The fear of global recession is keeping textile industry under tremendous pressure as most of our exports of clothing and textiles find their way to Europen and North American markets.

Consequently, phutti prices also remained on the lower side at Rs1,350 to Rs1,450 per 40 kgs.

However, market reports indicate that phutti from Sindh stations, Shahdadpur and Sanghar, has been fixed at Rs1,365 per 40kgs.

Similarly, price of Sindh variety cotton was down by Rs100 as it was quoted in the range of Rs2,650 to Rs2,850 per maund. The Punjab quality cotton was also traded at lower rates between Rs2750 and Rs2850 per maund.

However, a meeting called for fixing procurement price for the Trading Corporation of Pakistan (TCP) was delayed by a day and now will be held on Nov 26 in Islamabad.

Nevertheless, ginners and growers are desperately waiting for fixation of the support price and involvement of the TCP which they feel would help fetch better prices for their produce.

Market circles said that ginners in particular are stock-piling their stocks in the hope that the TCP’s entry into the market would help increase raw cotton prices. But the money crunch in the textile industry and fear of global slowdown in economic activity resulting in lesser import orders from developed countries is keeping textile industry under fears. The KCA reduced spot rates by Rs75 to Rs2,875 per 40kgs (ex-gin price) and Rs2,975 (ex-Karachi price).

The following transactions were reported to have changed hands: 800 bales from station Shahdadpur done at Rs2,700, 400 bales from Tando Adam done at Rs2,700, 1200 bales from Sanghar Rs2,700 to Rs2,750, 1000 bales from Khipro done at Rs2,700, 400 bales from Dadu done at Rs2,810, 1000 bales from Upper Sindh done at Rs2,900 to Rs2,950, 2,000 bales from Uch Sharif done at Rs2,900 to Rs2,950, 2,000 bales from Khanewal done at Rs2,900 to Rs2,960, 400 bales from Arifwala done at Rs2,800, 400 bales from Sadiqabad done at Rs3,000, 400 bales from Khanpur done at Rs2,950, 600 bales from Pul Bagar done at Rs2,800, 1000 bales from Bahawalnagar done at Rs2,800, 200 bales from Jahanian done at Rs2,800, 400 bales from Chichawatni done at Rs2,850, 1,000 bales from Rahim Yar Khan done at Rs2,900 to Rs2,950, 200 bales from Shadan Lund done at Rs2,900, 400 bales from Dera Ghazi Khan done at Rs2,900, 2,000 bales from Ahmedpur done at Rs2,900 to Rs2,925, 4,000 bales from Bahawal Pur done at Rs2,900 to Rs2,925, 1,000 bales from Jan Pur done at Rs2,900, 400 bales from Liquatpur done at Rs2,950, 400 bales from Alipur done at Rs2,950 and 400 bales from Hard done at Rs2,800.