KARACHI: Trading on the cotton market turned lacklustre on Monday. The undertone was firm but the outlook remained uncertain.

There was no new development which could be reckoned for this sudden slow down in trading activity, except that high cotton prices forced spinners to withdraw to the sidelines.

Since it is off-season, therefore, the market will keep behaving erratically and at times will experience brisk activity, depending upon the availability of cotton and its quality.

The world leading cotton markets also moved lower after witnessing a surge in commodity prices last week. There seems to be some correction in prices driven by New York Cotton Exchange.

The phutti (seed cotton) prices, however, were steady at Rs2,800-3,100 per 40kg. Very little phutti has been left behind in cotton fields.

Meanwhile, the Karachi Cotton Association (KCA) held an emergent meeting over the issue of spot rates where Pakistan Cotton Ginners Association, All Pakistan Textile Mills Association and KCA spot rates committee deliberated in detail over the spot rates.

It was realised that the spot rates should be realistic and close to the market rates as they are quoted all over the world for Pakistani cotton and also taken as reference rate in case of claims and litigations.

The KCA spot rates were firm at weekend level at Rs7,400 per maund. According to market report, no deals were reported to have transpired on the ready counter.

Published in Dawn, March 13th, 2018