KARACHI: Trading was lacklustre on the cotton market on Friday as sellers were reluctant to enter into deals at prevailing prices. However, dwindling cotton stocks, particularly of quality lint, are a major factor for slow trading, brokers said.

As the current season is approaching to an end, the cotton stocks in the country have declined below 250,000 bales, they added.

The sustained demand from the industry is keeping cotton prices on the higher side, brokers added. The expected delay in the arrival of next cotton crop because of late sowing is a cause of concern for spinners who are striving to build their stocks.

Trading volume on ready counter remained extremely slow and very few deals were made: 1,000 bales from station Tando Adam done at Rs4,900, 400 bales from Moro (conditional) done at Rs5,500 and 400 bales from Chichawatni done at Rs5,300.

The Karachi Cotton Association (KCA) spot rates remained steady at overnight level. The New York cotton market for the second consecutive sessions closed easy where all the future contracts ended with fresh falls.

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 1-1/16” micronair value between 3.8 to 4.9 NCL.

Published in Dawn, April 18th, 2015

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