Lacklustre conditions on
Cotton market on Saturday lacked normal trading interest as
ginners and spinners remained locked in price war owing to
unsettled conditions on the major world trading centres.
Floor brokers said the weakness of the New York cotton
futures did not allow global markets including the local one
as perceptions of cheaper imports continue to haunt local
ginners who could not precisely react to the changing world
They said mill buying was falling each session because of
slack demand of cotton yarn by the local ancillary industry
and inventories of unsold stocks were building up.
They said China and India are also facing problems of
various types in their respective countries linked to the
The sharp decline in imports of lint by China seems to have
chain impact on the falling world rates and the local market
is also the victim of buying support rather than any other
local problem as the crop is enough to meet the annual
consumption demand of the industry, they said.
“Local prices should have further declined from the current
levels but active support extended by the private sector
exporters is keeping the market afloat,” said chairman of
Karachi Brokers` Forum, Naseem Usman.
He said the world textile industry was heading for a big
crisis owing to problems on the textile export front and
sharp fall in demand of major consumers.
He said more than three dozen ancillary textile units in
Bangladesh have been reportedly closed because of the
brewing crisis and disturbing reports are also coming in
from other countries.
Official spot rates were again held unchanged but stray lots
in the ready section changed hands according to quality.
The following are some of the deals reported by the Karachi
Brokers` Forum on Saturday: 400 bales, Sultanabad at
Rs4,000, 400 bales, Mianwali at Rs5,700, 400 bales, Fort
Abbas at Rs5,200, 400 bales each, Chistian, Fort Abbas and
Hasilpur at Rs5,200 and 400 bales, Pir Mahal at Rs5,300.
Courtesy: The DAWN