KARACHI: As leading spinners avoided purchasing on Wednesday, the cotton market remained depressed and prices moved further down.

Currently, the textile industry is faced with huge unsold stocks of cotton yarn and spinners are not ready to further accumulate cotton stocks, brokers said.

Slow demand for cotton yarn from domestic and world markets has been depressing demand for cotton and despite lower estimates for cotton crop production, prices continued to stay under pressure.

Analysts believe that the falling cotton prices in the world’s leading cotton markets continue to have its toll over the local cotton market. It is also believed that the quality issue with local cotton had been another factor for poor buying interest from leading spinners who are reported to be more interested in imported cotton.

The New York cotton, in sympathy with the Indian and Chinese cotton, declined for all the future contracts.

The Karachi Cotton Association (KCA) spot rates were adjusted further lower by Rs100 to Rs8,650 per maund.

The following deals were reported to have transpired on ready counter: 400 bales from Tando Adam were done at Rs8,200; 400 bales, Kotri, at Rs8,200; 1,600 bales, Khairpur Mirus, at Rs8,400 to Rs8,600; 2,000 bales, Rohri, at Rs8,475 to Rs8,600; 1,000 bales, Saleh Pat, at Rs8,600; 200 bales, Chichawatni, at Rs8,200; 600 bales, Rajanpur, at Rs8,425; 800 bales, Yazman, at Rs8,400 to Rs8,450; 1,000 bales, Sadiqabad, at Rs8,750 to Rs8,800 and 800 bales from Rahim Yar Khan were done at Rs8,850.

Published in Dawn, November 29th, 2018