Lackluster trading witnessed at cotton market

Pakistan cotton market trading witnessed dullness as prices remained high but ginners were reluctant to sell their depleted stocks at current rates in anticipation that prices would further rise due to lower-than-expected cotton crop for 2013-14 season.

The sudden dip in phutti arrivals during third picking shocked all the stakeholders who were expecting larger cotton crop over last season (2012-13).

Floor brokers said that as the phutti arrivals have slowed down, the unsold stocks with ginners are also depleting fast because no fresh stocks are being built up.

The Karachi Cotton Association (KCA) left its spot rates unchanged and trading on ready counter was slow and restricted.

Limited trading was seen on Monday due to short phutti (seed cotton) supply and decreasing cotton stocks.

The following transactions were reported to have changed hands on ready counter: 200 bales, Khanewal, at Rs7,125; 200 bales, Chichawatni, at Rs7,150; 600 bales, Rahimyar Khan, at Rs7,200; 200 bales, Garhmaraja, at Rs7,200; 600 bales, Fazilpur, at Rs7,200; 200 bales, Muzafar Garh, at Rs7,200; 350 bales, Haroonabad (conditional), at Rs7,235; and 200 bales, Khanwal (conditional), at Rs7,275.

However, many leading spinners have already booked substantial quantity of cotton from India and only small- and medium-sized millers are running around to get hold of quality lint. As a result most of the ginners are now striving to get higher price for their limited unsold stocks.

Meanwhile, ginners have requested the government to import certified cotton seeds from abroad so that per acre yield could improve, and to save growers from suffering losses because of pest and virus attacks. Also many growers have already shifted to other crops and if the government does not immediately take appropriated measures, the cultivation area under cotton crop will shrink faster resulting in economic disaster for the country.