KARACHI: The cotton market on Wednesday remained steady amid sustained buying. Much of the activity, however, remained around quality lint.
With less than 500,000 bales left with ginners, many spinners tried to replenish their stocks, floor brokers said. Most deals were finalised at higher rates indicating that many spinners are nervous about the dwindling cotton stocks.
The delay in arrivals of new cotton crop and shortage of quality lint with hardly 500,000 bales left in the country is creating panic amongst spinners who have to go a long way before getting supply from new cotton crop.
There would be at least a gap of four to five months before the arrivals of new cotton crop which could not be before end-July or early August. The early sowing of cotton crop in Punjab could not be done because of recent spell of rains, brokers said.
In contrast, Sindh would be harvesting crop normally and it may help spinners to get some cotton supply around June, said brokers.
Major deals on ready counter were: 600 bales from station Shahdadpur (Rs4,750 per maund), 370 bales from Salehpat (Rs5,375), 4,113 bales from Dharki (Rs5,485 to Rs5,500), 2,862 bales from Ghotki (Rs5,500), 218 bales from Khanewal (Rs4,500), 600 bales from Sadiqabad (Rs5,400 to Rs5,500) and 1,200 bales from Rahimyar Khan (Rs5,400 to Rs5,500).
The world cotton market remained under pressure where New York cotton finished all-round lower. The five future contracts ended with modest falls. However, it is taken as a correction in prices.