Slow trading on cotton market


KARACHI: Slow trading witnessed on the cotton market on Saturday where prices remained steady but underlying sentiment was easy.

As the phutti (seed cotton) arrivals from cotton fields have almost touched rock bottom, many ginning units in Sindh and Punjab have closed down much earlier than their normal schedule.

The slow demand for cotton is attributed to depressed off-take of cotton yarn and, according to industry sources, cotton yarn stocks have started piling up with spinners who are now also started facing liquidity crunch.

The reopening of Chinese markets after a long closure on account of Lunar New Year has not brought much expected change in the world cotton markets as China continues to largely depend on its buffer stocks.

Consequently, overall world cotton markets remained slow and devoid of activity.

The Karachi Cotton Association (KCA) spot rates remained unchanged at previous level and trading on ready counter was slow.

The following major deals were reported to have changed hands on ready counter: 800 bales, Fort Abbas, at Rs6,875 to Rs7,000; 600 bales, Maroot, at Rs6,875 to Rs7,000; 400 bales, Mongi Bangla, at Rs5,950; 400 bales, Shujabad, at Rs7,200; 400 bales, Alipur, at Rs7,200; and 200 bales, Rahimyar Khan, at Rs7,125.