KARACHI: The cotton market on Thursday failed to shrug off lethargy as buyers remained absent. The underlying sentiment continued to be depressed.

After a long spell of downward trend, the world leading cotton markets witnessed correction under the lead of New York. However, this failed to influence the domestic market which remained listless and devoid of activity.

Unsold cotton and yarn stocks with ginners and spinners are adversely affecting the entire cotton economy as huge funds are getting blocked at each stage, brokers said.

Cotton analysts strongly believe things can only improve once country’s exports pickup since textiles constitute over 60 per cent of total exports. This will help enhance the cycle of movement of different raw materials including cotton to move at a faster pace, they added.

Internationally, New York cotton came under correction and recovered by US1 cent for some contracts. Chinese and Indian cotton markets closed firm.

The Karachi Cotton Association (KCA) spot rates were static at overnight level at Rs8,700 per maund.

Trading on ready counter remained listless and barring a couple of deals for low quality cotton, there was hardly any other development.

The following deals were reported to have changed hands on ready counter: 2,000 bales, station Khairpur Mirus, at Rs8,525; and 1,000 bales from Mianwali, at Rs7,400.

Published in Dawn, December 28th, 2018