KARACHI, March 26: Trading on the cotton market resumed on a cheerless note as buyers remained conspicuous by their absence in the absence of positive news from the export front and liquidity problems owing to larger unsold stocks of finished products.
The snap sluggishness, which has overtaken the market affected all the stakeholders but the grower was said to be worst-hit as he could not get a fair price for his product, some analysts said.
They said the ginners who are holding larger unsold stock of lint are also feared to be also at a risk as prices have fallen from the early peak level to the lowest owing to falling mill demand.
Floor brokers said mill ready off-take was confined to a couple of lots as some needy spinners lifted stray lots at rates suited to their parity levels.
But a fine lot from an upper Sindh ginnery was sold at the recent higher rate of Rs.5,750,indicating that spinners and mills are active buyers of fine lots from southern Punjab cotton belt also at the higher rates, they said.
However, the general impression is that the activity on the cotton market may not pick up problems, notably liquidity, larger unsold stocks and an improvement in export sales is visible, market sources said.
Although the unsold stocks with the ginners are manageable but the higher crop idea could make things a bit difficult for them as the mill demand did not get normal, they said.
Official spot rates were again held unchanged at the weekend level of Rs5,300 per maund for an average type of lint.
The following are some of the lots, which changed hands as reported by the Karachi Brokers’ Forum on Monday: 400 bales, Sanghar at Rs4,000, 400 bales, Ghotki on credit at Rs5,750, 400 bales, Khanpur at Rs5,200 and 1,000 bales, Rahimyar Khan at Rs5,500.