KARACHI: Listless conditions prevailed on the cotton market on Monday as buyers awaited lifting of import ban on Indian cotton.
Barring a few needy spinners who indulged in small lot deals, the market lacked buying activity. A sudden drop in phutti (seed cotton) arrivals caused panic because around 10.2 million bales were reported to have been produced up to Nov 30.
However, this is still higher than last year’s production by 3.62 per cent or 353,623 bales.
The issue of quality continues to disturb buyers who are not ready to take risks, particularly when there is hope of imports from India.
Prices also remained under pressure and closed lower for third consecutive day.
However, the Karachi Cotton Association (KCA) kept its spot rates steady at weekend level. Meanwhile, cotton prices in India rose by Rs300 per candy (356kg) in the anticipation of demand from Pakistan and fear of extensive damage to the standing crop due to pink bollworm.
The Chinese and New York cotton markets also remained firm. The following deals were reported to have changed hands on the ready counter: 800 bales, Khairpur, at Rs6,500; 800 bales, Rohri, at Rs6,550; 400 bales, Saleh Pat, at Rs6,550; 600 bales, Jalalpur, at Rs6,675; 800 bales, Khanewal, at Rs6,800; and 1,000 bales, Rajanpur, at Rs6,800.
Published in Dawn, December 5th, 2017
