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Commodities: Slow trading on cotton market

Commodities: Slow trading on cotton market

KARACHI: Buyers took cautious approach on Wednesday by restricting their buying activity owing to slow off-take of cotton yarn and tough competition being faced from cheap Indian yarn in domestic and world markets.

Brokers said higher arrival of cheap Indian cotton yarn has shaken up the confidence of spinners who are presently faced with high cost of production and rising stocks of unsold cotton yarn.

Leading spinners stayed away from the trading ring and only those spinners who were in urgent need entered into small-lot deals. Though prices remained steady, the underlying sentiment remained weak, brokers added.

Naseem Usman, the chairman of the Karachi Cotton Brokers Association, told Dawn that currently only 16 single yarn, mostly used for making denim and tents, was in strong demand. Besides, the polyester/cotton mixed yarn is also in demand while other counts yarn was lacking buying interest.

Meanwhile, world cotton markets generally remained firm except the Chinese market, which came under pressure.

According to reports coming from cotton fields, little cotton has been left for picking. Nearly 500,000 bales are expected to arrive in the first half of this month. It is being estimated that around 90 to 95 per cent of cotton has already reached ginneries.

The Karachi Cotton Association spot rates were firm at overnight level. Major deals on the ready counter were: 800 bales from Sanghar (done at Rs5,600 to Rs5,900), 400 bales Jhole (Rs5,900), 1,000 bales Khairpur (Rs6,200), 1,600 bales Rohri (Rs6,000 to Rs6,450), 2,000 bales Saleh Pat (Rs6,300), 400 bales Sarhad (Rs6,500), 400 bales Khanpur Mehar (Rs6,500), 400 bales Mirpur Mathelo (Rs6,500), 800 bales Ghotki (Rs6,500), 1,000 bales Dharki (Rs6,500), 3,200 bales Mianwali (Rs6,000 to Rs6,100), 600 bales Basti Maluk (Rs6,300), 1,000 bales Fort Abbas (Rs6,400) and 600 bales Rahimyar Khan (Rs6,525 to Rs6,550).

Published in Dawn, December 15th, 2016

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