KARACHI: Renewed buying at lower level on Wednesday helped the cotton market record some activity. However, most of the deals were of quality cotton in small lots.

The Karachi Cotton Association (KCA) spot rate was revised downward by Rs100 to Rs8,600 per maund. Shortage of quality cotton is being reckoned as the main reason behind restricted activity.

According to market sources the textile industry is also currently faced with financial crunch.

After a gap of over two weeks, cotton arrival from India has resumed but in small quantity. Similarly, cotton booked by textile spinners from USA has started to gain momentum.

Most of demand from industry would be met from American cotton, brokers said.

Further delay in US-China trade talks continues to overshadow world trade. International cotton markets mostly moved within a narrow range and closed steady to mix.

The following deals were reported to have changed hands on ready counter: 400 bales, station Mirpur Mathelo, at Rs8,700; 600 bales, Lodhran, at Rs8,550; 400 bales, Rahim Yar Khan, at Rs8,800; 200 bales, Jalalpur, at Rs8,300; and 400 bales, Mian Channu, at Rs8,550.

Published in Dawn, March 21st, 2019