KARACHI: The cotton market remained lacklustre on Friday on slow demand from spinners who seem to be facing acute shortage of working capital.

Though world’s leading cotton markets witnessed brisk activity and prices also moved higher, the domestic cotton market remained listless. The issue of textile industry’s stuck refunds is one of the major factors behind the lacklustre trading.

Brokers said delay in arrival of next cotton crop and limited stocks held by ginners normally triggered panic buying, but slow off-take of yarn and falling textile exports are such factors which dampening sentiment, brokers said.

According to market estimates around 250,000 bales of unsold stocks are currently held by ginners whereas the new crop arrival would not be possible before end June or early August.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level. And as per official figures no transactions were reported to have transpired on ready counter.

Published in Dawn, April 22nd, 2017