KARACHI: In the midst of sluggish performance, the cotton market on Friday maintained steady price structure but the undertone remained weak and outlook uncertain.

Slow trading activity is being reckoned to year closing as most taxpayers are preoccupied in squaring up their books of accounts.

Moreover, gas shortage to the industry has also shaken up the confidence of buyers, brokers said.

Ginners are holding huge unsold stocks of around 1.9 million bales. These unsold stocks have disturbed the entire cotton chain phutti (seed cotton) is not being procured from growers.

Another issue currently confronted by spinners is the shortage of quality cotton while big textile spinning groups are heavily dependent on imported cotton, brokers said.

Nevertheless, the positive news of China buying American cotton has started to produce results on global markets.

However, this seems to have negative implication on Indian cotton as China has diverted its buying which put Indian

cotton under pressure and closed further down between Rs100 to Rs300 per candy.

Contrary to this New York and Chinese cotton markets closed mixed to steady.

It is being anticipated that in coming days both the markets would further firm up.

The Karachi Cotton Association (KCA) spot rates were steady at overnight level at Rs8,800 per maund.

The following deals were reported to have changed hands on ready counter: 200 bales, station Rajanpur, at Rs9,000; 400 bales, Marot, at Rs8,400; 1,200 bales, Vehari, at Rs8,300-8,375; and 200 bales, Chichawatni, at Rs7,800.

Published in Dawn, December 15th, 2018