KARACHI: Lack of buying interest once again pushed cotton prices under pressure when trading resumed on Monday.

Buyers were cautious in front of slow off-take of cotton yarn and grey fabric.

According to market reports, leading spinners continue to be absent while some small spinners indulge in buying on a day-to-day basis resulting in erratic market behavior.

The current cotton season (2017-18) is almost at its end and very little phutti (seed cotton) is left behind in fields.

Leading spinners are holding substantial cotton inventories and have booked lint for import, brokers said.

The depressed yarn and grey fabric markets are taking a toll over the workings of the cotton market, with global trend continuing to influence domestic trading, brokers said.

New York cotton, which ended its last session on an easy tone, was closed due to a federal holiday (Presidents’ Day). The Chinese cotton market will be closed till Feb 21 on account of the new lunar year. The Indian market was also mix to easy.

The Karachi Cotton Association (KCA) spot rates were revised lower by Rs100 to Rs6,900 per maund.

Trading on ready counter remained dismal. Only two small lot deals were finalised — one coming from station Rahimyar Khan of 700 bales done at Rs6,400 and the other of 200 bales from Fazilpur done at Rs6,200.

Published in Dawn, February 20th, 2018