By admin       2018-04-09

KARACHI: Extremely slow trading was witnessed on the cotton market on Friday as buyers kept to the sidelines and prices remained under pressure. Barring a couple of deals that transpired on ready counter, the market was lacklustre and prices moved lower. The undertone also remained easy and outlook uncertain. Although the New York cotton market recovered on higher cotton export figures issued by the US Agriculture Department, this did not impact markets internationally. Indian cotton also rose by Rs400 per candy (356kg) to Rs40,900 of Shankar’6 and Rs41,800 for Bunny varieties. The Chinese cotton market remained close. Limited cotton stocks are currently held by ginners, with market reports suggesting limited availability of quality lint. Some estimates put unsold stocks with ginners at 450,000 bales only. Meanwhile, irrigation water shortage continues to adversely affect sowing and growers are completely in disarray. The biggest issues facing cotton production are poor quality seed and pesticides while the Sindh and Punjab governments show no interest in resolving. Another issue the flow of phutti (seed cotton) from areas under pest attacks to other locations. Since there is no restriction, infested seed cotton goes on to spread the pests in others districts. The issue is grave in Punjab and is the main cause of lower yield, observes a cotton grower. The Karachi Cotton Association (KCA) spot rates were firm at overnight rates and trading on ready counter was extremely slow. One deal from Layyah of 800 bales was done at Rs6,400 while another deal of 400 bales from Haroonabad transpired at Rs6,000.

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