KARACHI: The cotton market on Thursday remained subdued as buyers were conspicuous by their absence. The undertone was easy, though demand for quality cotton was evident.

Leading textile spinners are said to be busy in clearing and making payments towards imported cotton, thereby contributing to lacklustre conditions in the market.

According to market reports, most spinners booked cotton when the currency parity was at Rs125 which has now surged to Rs139 to a dollar and this has resulted in huge financial burden on the industry.

Moreover, cotton yarn market has been performing sluggishly forcing spinners to withdraw to the sidelines. Liquidity crunch is another issue that the market is facing as most funds have been diverted for clearing imported cotton.

The world leading cotton market closed mixed as New York cotton recorded some profit selling. China continues to be biggest buyer of American cotton during the week.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs8,600 per maund.

Trading on ready counter remained slow and restricted and following deals were reported to have changed hands: 400 bales, station Ghotki, at Rs8,900; 400 bales, Rahim Yar Khan, at Rs8,800; and 600 bales, Sadiqabad, at Rs8,800.

Published in Dawn, March 22nd, 2019