KARACHI: Dull and dreary conditions prevailed on the cotton market on Tuesday as buyers and sellers stayed away.

According to market reports, no transactions were reported on the ready counter. Overall, the undertone was firm but the outlook uncertain as the market was directionless due to diminishing stocks and shortage of quality lint.

The Karachi Cotton Association (KCA) did not change the spot rates, currently pegged at Rs7,400 per maund.

High cotton prices are reportedly discouraging small spinners from making fresh booking from local market. Leading spinners are meeting their demand from imported cotton.

The world leading cotton markets also suddenly turned inactive and prices generally moved lower. The New York, Indian and Chinese cotton markets closed easy.

Meanwhile, the crop assessment committee of Cotton Association of India has lowered cotton production figures for the third time to 30.62 million bales from the previous estimate of 30.67m bales. However, quantity of cotton exports has been increased from 5.5m bales from 6.0m bales.

Indian cotton consumption has also increased from 30.20m bales to 30.30m bales as 3.5-4.0m new spindles have been installed. As a result, end stocks of cotton would be much lower at 2.2m bales from earlier estimates of 4.2m bales.

Published in Dawn, March 14th, 2018