KARACHI: Cotton trading was listless on Monday as buyers and sellers generally remained on the sidelines. Ginners have very little quantity of stocks at present, especially of quality cotton.
According to market sources, the latest report of phutti (seed cotton) arrivals issued by ginners’ body a day earlier has strongly indicated that crop size would not be more than 9.75 million bales this season.
Consequently, it seems the ginners have adopted a wait-and-see policy in the hope of getting better prices in the coming days. However, it was also being said by brokers that shortage of quality cotton was another major factor of slow trading.
Meanwhile, the International Cotton Advisory Committee (ICAC) has forecast that Pakistan would be harvesting bumper cotton crop next year. According to ICAC, the cotton production would be close to 2.1 million tonnes.
But ground realities indicate that so far even sowing has not started, particularly in Punjab, which produces around 80 per cent of country’s cotton. However, sowing has started in the lower Sindh, but on a small scale.
In general, the trading activity remained dull and dreary as there was no buying and selling enthusiasm and the undertone also remained easy and outlook uncertain.
The Karachi Cotton Association (KCA) spot rates were firm at weekend level. Only one deal of 2,200 bales from Hyderabad was finalised (at Rs4,400 per maund).