KARACHI: Trading activity on the cotton market failed to revive as buyers remained on the sidelines on Monday.
Floor brokers said millers are eagerly waiting for new crop arrival which is expected by the end of this month from Sindh. However, there is some delay in cotton crop arrival in Punjab due to late sowing.
Presently, millers are facing shortage of quality lint because depleted stocks held by ginners from last crop are mostly of lower quality, brokers said.
Consequently, the market is currently waiting for new crop and only then some brisk activity could be witnessed, brokers added.
Reports coming from cotton fields indicate that crop in both Sindh and Punjab so far is maturing normally. However, brokers said heavy monsoon downpour and floods might cause damage, otherwise the country could harvest good cotton crop this season.
Barring a few small lot deals mostly transpiring between mills, trading remained extremely slow.
The Karachi Cotton Association (KCA) spot rates remained unchanged and officially no deal was reported to have changed hands.
Published in Dawn, June 17th, 2014.