KARACHI: The cotton market remained listless on Monday as buyers took to the sidelines owing to shortage of quality lint. Demand for cotton yarn also remained slow.
Trading activity resumed on a dull note and textile spinners were conspicuous by their absence. However, some needy mills moved in during the second half of trading session.
The biggest issue currently confronting cotton trade is shortage of quality cotton despite sizeable stocks are held by ginners, brokers said. Panicky ginners are seeking a ban on import of raw cotton.
However, some reports suggest that phutti (seed cotton) stocks with ginners are also declining and this would be a positive development for the cotton trade.
Slow exports of cotton yarn are depressing its prices. However, domestic textile value-added industry was performing better with slight improvement on export front.
The world leading cotton markets also gave mixed trend and could not take a definite course owing to varying statements coming from political leaders.
The Karachi Cotton Association (KCA) spot rates were firm at week-end level at Rs8,800 per maund.
The following deals were reported to have changed hands on ready counter: 1,600 bales, station Tando Adam, at Rs5,750-8,200; 8,000 bales, Khairpur, at Rs8,050-8,600; 2,000 bales, Rahim Yar Khan, at Rs8,900; 3,000 bales, Khanpur, at Rs8,900-9,000; and 200 bales, Sadiqabad, at Rs89,00-9,000.
Published in Dawn, December 10th, 2019