KARACHI: The cotton market on Monday remained dull as the presence of buyers and sellers in the trading ring was very thin. The undertone remained easy and outlook uncertain.
Floor brokers said that depressed condition in world cotton markets and slow off-take of cotton yarn and textile goods were giving gloomy outlook as spinners had also reduced their daily operational shifts.
Imports of huge quantity of cotton was equally hurting the domestic market and ginners with unsold stocks of around one million bales are worried and asked the government to ban cotton imports.
The chairman of Pakistan Cotton Ginners’ Association (PCGA) has drawn the attention of the government towards unsold cotton stocks with ginners and added that it was directly harming growers who have already suffered immensely owing to crop failure in Punjab.
Lint prices further came down and ready counter transactions were finalised at lower rates and activity also remained limited, brokers said.
Meanwhile, phutti (seed cotton) arrivals from fields into ginners have slowed down and very few ginning units are currently operating in Sindh and Punjab.
The KCA cut its spot rates by Rs50 to Rs5,250 per maund. Major deals on ready counter were: 1,600 bales from Shahpur Chakar (at Rs4750 per maund) and 800 bales from Yazman Mandi (Rs5,100).