KARACHI: Trading remained lacklustre in the cotton market on Thursday.

A new spell of rains has hampered the supply of phutti (seed cotton), causing an acute shortage of cotton. There was demand from spinners, but the shortage of lint kept trading dull. Phutti arrival from lower Sindh begins early in the season. But heavy rains in the area have brought it to a halt, brokers said.

Another major problem was the high content of moisture in phutti, which was rejected by ginners because of its smaller yield. Spinners were also reluctant to purchase cotton because of the high moisture content.

However, reports coming from cotton fields suggested that so far rains caused no damage. But there was apprehension that the next spell of rain originating from the Indian state of Gujarat could take a toll on standing cotton in Badin, Digri and Umerkot.

Meanwhile, ongoing rains in Punjab are being considered favourable to cotton crops because these are mostly at their initial stage in many parts of the cotton-growing areas.

Global cotton markets remained firm, but that of India came under pressure and closed lower.

Spot rates of the Karachi Cotton Association were firm at the overnight level.

Trading on the ready counter was negligible. Only 200 bales from Sanghar were traded at Rs6,300 per maund.

Published in Dawn, July 21st, 2017