KARACHI: Trading was slow on the cotton market on Wednesday in the wake of depressed phutti (seed cotton) arrival figures. Much of the buying remained around low quality lint because of short supply of quality cotton.
Floor brokers said that steady flow of buying orders for low quality cotton kept prices steady but big spinners were conspicuous by their absence. The market should have rebounded under normal circumstances but since the textile industry is facing financial crisis there was no immediate reaction.
According to reports, the ginners’ body has placed fresh cotton production figures close to 9.6 million bales, a shortfall of almost 5m bales over the previous year.
The industry does not seem to be in panic or hurry to replenish their stocks despite the fact that the quantity of unsold cotton stocks with ginners is also very low, at around 1.2 million bales.
Barring small lot deals originating from some spinners, the activity was slow and devoid of enthusiasm, brokers said, adding that the government’s “indifference” to the cotton economy was surprising.
The world cotton markets moved higher with New York cotton closing further high for all the future contracts. The Karachi Cotton Association (KCA), however, kept its spot rates unchanged.
Major deals on ready counter were: 800 bales from Shahdadpur (Rs4,800), 400 bales from Sui (Rs5,300), 200 bales from Rohri (Rs5,300), 400 bales from Lodhran (Rs5,250), 200 bales from Dharanwala (Rs5,375), 300 bales from Fort Abbas (Rs5,450), 400 bales from Rahimyar Khan (Rs5,600), 400 bales from Kabirwala (Rs5,650), and 600 bales from Mianwali (Rs5,650).