Cotton market stays listless

KARACHI: Trading activity on the cotton market was dull on the last day of the week as sellers and buyers remained on the sidelines waiting for the government’s decision on the controversy over the yarn export quota, dealers said on Saturday.

They said spinners and value-added textile sector retained a row about the yarn quota. The entire cotton market depicted a lull trading all over the week. Cotton prices remained stable without any fall or rise. However, ginners raised their asking prices in the market as they held bulk of the fine unsold lots. Despite lacklustre trading millers actively participated in the market.

The value-added sector representatives criticised the spinners for exporting yarn at lower than the domestic prices.

Around 350 yarn manufacturing factories in the country went on strike to protest against a government move, which cut their export quota to 35 million kg of yarn a month from 50 million kg.

The spinners called off their strike on official assurance that monthly yarn export quota would be restored, but it is still held in abeyance after a number of meetings with both the parties and the government’s circles.

Fall in world prices persisted, New York cotton futures suffered another decline of 0.49 and 0.31 cents per lb at 79.69 and 80.96 cents for both the ruling May and the forward July settlements respectively. According to the Karachi Cotton Association (KCA), the official spot rates for cotton were held at 5,450 per maund and Rs5,841 per 40 kgs.