KARACHI: Figures released by the ginners’ body on Friday showing a fall in crop size received only a muted response from the cotton market as buyers faced with financial crunch stayed away.
Floor brokers said that it was not surprising to see that the market did not respond to the phutti arrivals report which showed crop size even lower than being anticipated by cotton experts and analysts.
The textile industry faced with high stocks of unsold cotton yarn and high cost of doing business are the obvious reasons that no surge in cotton demand was seen even after coming to know that crop size would be more or less around 9 million bales, they added. Had the yarn and textile industry not confronted with financial crisis and gas and power shortages, there would have been strong demand for lint, brokers said.
A broker believed the prices should have soared by Rs300 to Rs400 in a single day under normal circumstances.
Meanwhile, some reports suggested that a huge quantity of imported cotton is lying at one of the city’s ports causing congestion. The financial crisis facing spinners is hampering the clearance of imported cotton, they added.
The Karachi Cotton Association (KCA) left its spot rates unchanged. Major deals on ready counter were: 400 bales from Nawabshah done at Rs5175 to Rs5250, 400 bales Sui at Rs5325, 400 bales Rohri at Rs5315, 400 bales Chichawatni at Rs5150, 800 bales Bahawalpur at Rs5175 to Rs5250, 500 bales Haroonabad at Rs5250, 400 bales Khanewal at Rs5380, 400 bales Fazilpur at Rs5550, 400 bales Mianwali at Rs5550, 2000 bales Khanpur at Rs5550, and 400 bales Sadiqabad at Rs5600.
The world cotton market also remained easy for third consecutive session where New York cotton closed lower for all the future contracts.