KARACHI: Steady conditions prevailed on the cotton market on Saturday though buyers seem to be still assessing the outcome of the budgetary measure.
The volatile current market situation with rapid rise in dollar price against the rupee also kept buyers and sellers in a state of confusion and uncertainty.
The on-going protest of the textile sector against the withdrawal of zero-rated facility for exports has also depressed market sentiment, brokers said. It was generally felt that budgetary measures are against trade and industry.
Meanwhile, new crop phutti (seed cotton) arrival from lower Sindh has started and around six ginning units have partially started operations. The new crop phutti rates ranges between Rs3,900-4,000 per 40 kg.
According to market sources, 200 bales of new crop from station Sanghar were done at Rs8,700 per maund. The current season (2018-19) cotton production up to May 1, 2019 stood at 10.08 million bales which stands 7 per cent lower than last season.
Unfortunately, different government departments continue to give different cotton production estimates for new season crop (2019-20). The Federal Agriculture Committee has placed cotton production estimate at 15 million bales where as Senate Standing Committee has put the production estimates at 15.2m bales. Last season initial estimates were placed at 15.43m bales but production up to May 1, 2019 stood at 10.8m bales only.
The world leading cotton markets remained mixed with New York cotton coming under profit selling.
The Karachi Cotton Association (KCA) spot rates were marked unchanged at Rs8,800 per maund.
Trading on ready counter remained listless as buyers avoided to enter into deals.
Published in Dawn, June 16th, 2019