MULTAN: The cotton market failed to expand trading activity on Thursday as ginners were reluctant to enter in deals while buyers remained focused on quality lint.
The Karachi Cotton Association kept its spot rates unchanged at Rs9,100.
Cotton broker Syed Mudabbir Shah said mill owners are sharing details of their import consignments with brokers and claiming that a sizeable quantity of cotton is coming to the country. “This is a move to keep the local market under pressure. However, these [millers] are still present in the market. Such tactics will not be very helpful as the ginners are aware about the availability of unsold stocks and local consumption. Already, the cotton production target has been revised twice and still it could not be met,” he added.
He said that it is not possible to import the required quantity in such a short time to meet demand that’s why millers are in the market.
Soon small mills, which are not capable of keeping huge inventories or import cotton, will shift to artificial fabric, he added.
The arrival of phutti (seed cotton) during the ongoing fortnight is being estimated 30-40 per cent less as compared to the previous fortnight.
Phutti prices in both Sindh and Punjab remained between Rs3,200-4,800.
The following deals were reported to have changed hands on ready counter: 600 bales, station Sadiqabad, at Rs9,350; 1,000 bales, Khanpur, at Rs9,200, 400 bales, Yazman at Rs8,550; 600 bales, Fort Abbas, at Rs8,850; 400 bales, Faqirwali, at Rs8,600; 200 bales (Balochistan), Dera Ghazi Khan, at Rs9,300; 200 bales (seed quality), Daharki, at Rs94,00; and 400 bales (low quality), Vehari, at Rs8,000.
Published in Dawn, January 24th, 2020