KARACHI: The cotton market turned easy on Friday as leading spinners stayed away from the proceedings.
Floor brokers said that a slump in cotton yarn and fabric markets is depressing cotton trade, and leading spinners have already imported a substantial quantity of cotton.
Despite the fact that stocks are low and there is little hope of any substantial arrival of phutti (seed cotton) during the current season, there are hardly any signs of panic buying.
Brokers said millions of spindles would go idle in the coming days which would have a snowball effect on the entire textile chain.
The only hope cotton analysts see is that China is going to reduce cottoncultivation area next year which would help induce imports of cotton yarn from countries like Pakistan.
The KCA cut its spot rates by Rs50 to Rs5,300 per maund. The New Yorkcotton market recovered part of the overnight losses where all the futures, except October 2016, recorded modest gains.
Major deals on the ready counter were: 400 bales from station Faqirwali (Rs5,200), 400 bales Yazman Mandi (Rs5,325), 1,000 bales Mianwali (Rs5,475) and 600 bales Mianwali (Rs5,480).