KARACHI: Easy conditions prevailed on the cotton market on Monday as spinners remained on the sidelines. Shortage of quality lint coupled with depressed demand for cotton yarn adversely affected sentiment.
Floor brokers said that many spinners initially moved in to replenish their stocks but they failed to get hold of quality lint amid short supply.
Though world cotton markets last week partially recovered recent losses on US Agriculture Department forecast of higher cotton consumption next season, the domestic market remained under pressure.
Brokers said that issues confronting the textile industry particularly related to high cost of doing business and stuck-up refunds with the Federal Board of Revenue are major factors inhibiting spinners from building up stocks.
The Karachi Cotton Association (KCA) cut its spot rates by Rs50, to Rs5,200 per maund.
The shortage of quality lint is another factor which is keeping the market devoid of activity. At present, ginners held stocks of less than 500,000 bales, brokers added.
Delay in early sowing of cotton crop in Punjab owing to recent rains was a cause of worry for spinners but depressed world market and domestic issues continued to bog down the spinning industry, brokers said.
According to daily KCA report, only one deal of 400 bales from Chani Goth was finalised (at Rs5,150 per maund).