Mills and spinners kept on the sidelines on the cotton market on Wednesday due to short supply of fine type and partly because of growing uncertainties on the political front, dealers said. The official spot rate was unchanged at Rs 7400, they added. In the ready session, not a single deal reported till our going to the press, they said.
According to the market sources, leading spinners did not take interest in fresh buying due to less supply of lint cotton. The buyers failed to make any deal in the absence of motivating factor, they said. Cotton analyst, Naseem Usman said that hovering uncertainties on the political front, discouraged leading buyers, as a result of trading activity came down these days. If cotton production shows improvement in the coming season, the spinners may be able to achieve their desired size and quality, he said.
The sowing was delayed in some cotton growing areas, which may cause delay cotton arrivals in the coming days, other experts said. The cotton production may be around 12 million to 13 million bales, but it is too early to say about the crop size, they added. In the international market, prices almost moved both ways during the trading session, they said.