KARACHI: The cotton market on Saturday remained lacklustre though the prices remained steady at overnight level. The buyers are unwilling to take risk as they await the mini-budget on Jan 23 and this has kept the sentiment subdued and uncertain.

Several negative rumours also depressed the working of market, brokers said.

In general, the cotton prices remained lower during the week within the range of Rs7,000-8,800 for Sindh and Punjab varieties and Rs3,000-3,800 per 40 kg for phutti (seed-cotton).

The orders received by the Pakistani exhibitors in Heimtextil is the only hope for the slow going textile industry and this development is being taken as a blessing if proves right, Chairman Karachi Brokers’ Forum Naseem Usman said.

There are signs of a better offtake of cotton yarn by spinning mills and once the cycle starts moving, the ginners will also receive good orders for cotton from the textile industry.

Meanwhile, cotton production this season is expected to be around 10.8 million bales which means that the country will have to import around 3.5-4m bales to meet the industry’s consumption demand.

The Karachi Cotton Association spot rates were unchanged at overnight level at Rs8,700 per maund.

Trading on ready counter remained extremely slow and negligible and officially only one deal of 400 bales from station Mianwali was done at Rs7,800.

Published in Dawn, January 13th, 2019