KARACHI: Falling world crude prices coupled with demand for lint in the world markets and rising political uncertainty in the country kept the trading at cotton market slowed and depressed while the Karachi Cotton Association (KCA) spot rates remained were steady at previous level.
As per market reports, though the Trading Corporation of Pakistan has signed accords with ginners for the purchase of 390,000 bales, it failed to leave any impact on the prices of lint.
Larger cotton crops being expected by major cotton-growing countries, including Pakistan and India, are also depressing lint prices in world markets where inventories are swelling.
Similarly, local ginners are also reported to be complaining of holding huge unsold stocks of cotton which is not only creating storage problem for them but also causing liquidity crunch.
The ginners are also complaining that the TCP was not increasing the pace of lint buying.
The state-owned TCP has failed to pace up the buying prices ands is carrying out sampling before purchasing.
On the other hand, the Karachi Cotton Association (KCA) spot rates were steady at previous level.
The following major deals were finalised on ready counter: 600 bales Rasoolabad at Rs4,700, 1,000 bales upper Sindh at Rs4,800 to Rs4,850, 600 bales Hasilpur at Rs4,800, 1,000 bales Haroonabad at Rs4,825, 1,000 bales Gojra at Rs4,850, 800 bales Bahawalpur at Rs4,900 to Rs4,950, 800 bales Noorpur at Rs4,950, 2400 bales Layyah at Rs4950, 1400 bales Muhammadpur at Rs5000, 2000 bales Sadiqabad at Rs5,000, 2,200 bales Rahimyar Khan at Rs5,000, 1,000 bales Mianwali at Rs5,075 to Rs5,100 and 400 bales Pir Mehal at Rs4,925.
