Trading at cotton market continued to remain dull

With most of raw cotton and textile business moving at a slow pace, activity in the cotton economy is said to be close to a standstill. At ready cotton market conditions continued to remain dull, though a few sales of ready cotton took place, but several mills were also unloading their cotton stocks.

Textile mills aver that their cost of production has shot up due to increases in cost of power, gas and labour wages. Not many credible reports were being received regarding any cotton import activity by the mills.

According to textile brokers, sales of yarn, cloth and garment were also minimal and lack of any serious activity. In fact most cotton and textile sales activity is at a standstill. There appear no buyers or any outlet for the mills to dispose their yarn or cloth.

Thus many textile goods are being piled up in the mills. As a result, the Pakistan textile industry is derived from taking full advantage of the General System of Preferences (GSP Plus) status granted earlier to augment its exports to Europe. New cotton crop (2014 / 2015) is now reportedly coming up well in Pakistan and some forward sales have also been reported.

The general price idea of the current crop (2013 / 2014) from Sindh reportedly ranged from Rs 5400 to Rs 6800 per maund (37.32 Kgs), according to the quality. In the Punjab, current crop prices are ranging from Rs 5400 to Rs 6800 per maund in a very weak market. Weakness on the cotton market was also reported to be due to very slow lifting of the yarn.

In ready sales of current crop (2013 / 2014) on Thursday, 200 bales of cotton of lower quality from Sanghar sold at Rs 5300 per maund (37.32 Kgs), while 200 bales from Mirpurkhas have been sold at Rs 5400 per maund. In new crop (August 2014 / July 2015) sales of cotton, 200 bales from Sanghar were said to have been sold at Rs 6700 per maund (37.32 Kgs) with delivery stipulated on 22 June 2014.

On the global front, despite fears and apprehensions regarding the essentially unfavourable economic condition in most countries and regions, the markets remain upwards driven. Almost all the equity markets veered up further and showed a remarkable upward trend.