KARACHI: Activity on the cotton market continued to be lacklustre on Saturday due to short supply for cotton.

Though lint prices remained steady but activity could not improve due to acute shortage of the commodity. As the current season nears its end, the availability of quality cotton is also becoming difficult with each passing day.

As the world leading cotton markets noted recovery in cotton prices, the impact was also evident on local prices. However, shortage of quality cotton disappointed many spinners who were eager to replenish their stocks.

According to market sources, revival of demand for cotton yarn and grey fabric also induced sentiment. A rise of around 14 per cent in textile exports last month generated some demand, brokers said.

In general it could be said that cotton prices were steady amid poor trading activity. Cotton prices for Punjab and Sindh varieties were quoted at around Rs5,800-7,300 per maund. Phutti (seed cotton) prices also stood steady in the range of Rs2,400-3,000 per 40kg.

Market estimates have put cotton production for current season (2017-18) at around 11.6 million bales. Big spinners have booked import orders of around 2.5m bales which have started to land at country’s ports.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs6,900 per maund.

On the ready counter, only one deal of 400 bales from station Khairpur was done at Rs6,250.

Published in Dawn, February 25th, 2018