KARACHI: Trading in the cotton market remained moderate on Thursday as leading spinners remained on the sidelines due to quality issues and shortage of transport.
The government’s decision to halt trade relations with India did not have any immediate impact on the market, brokers said. Pakistan imports an average 1.5 million cotton bales from India annually.
Brokers said cotton prices may start rising immediately after Eidul Azha. Currently trading activity is low and buyers are not keen on building their stocks. The shortage of vehicles and lint quality constraints kept millers away from the trading ring. Barring a few needy buyers, the market remained confined to small lot deals.
After cutting off trade relations with India, cotton imports could start from United States, Brazil, Greece and some African countries, though the freight cost would go up, market sources said.
On the global front most of the leading cotton markets gave mixed trend with New York cotton partially maintaining its overnight recovery. The Indian and Chinese markets were also mixed to steady.
The Karachi Cotton Association (KCA) spot rates were steady at overnight level at Rs7,750 per maund.
The following deals were reported to have changed hands on ready counter: 1,000 bales, station Tando Adam, at Rs7,700-7,750; 1,000 bales, Sanghar at Rs7,700-7,750; 600 bales, Hyderabad at Rs7,700-7,750; 600 bales, Vehari at Rs7,950-8,000; 600 bales, Burewala at Rs7,975-8,000; and 200 bales, Chichawatni at Rs8,050.
Published in Dawn, August 9th, 2019