KARACHI: The cotton market on Tuesday remained devoid of activity because ginners were reluctant to dispose of their stocks at prevailing prices despite strong demand from spinners.

Influenced by soaring world cotton prices, ginners started demanding higher prices as New York cotton touched the seasonal peak of 79.97 cents per pound.

Although China released some cotton stocks on Monday, the move failed to check the rising cotton prices worldwide. Indian cotton also recorded fresh gains.

However, spinners were unwilling to pay high prices to avoid compromising their competitive edge. The shortage of quality cotton and limited stocks of unsold cotton with ginners also impacted trading.

The Karachi Cotton Association (KCA) spot rates remained unchanged. Limited trading was reported on the ready counter. Major transactions included 587 bales from Tando Adam at Rs6,800, 200 bales from Khanewal at Rs6,900 and 300 bales from Haroonabad at Rs7,100.

Published in Dawn, March 8th, 2017