The cotton market yesterday remained steady where buyers remained in the forefront. The underlying sentiment also stood firm.
Cotton procurement operations by the Trading Corporation of Pakistan (TCP) which began late last week have helped phutti (seed cotton) prices to stabilise.
However, brokers are apprehensive about the TCP’s involvement in cotton trade and fear it will have negative implications because it may disturb import parity and attract spinners to meet their lint requirement through imports.
They added that world cotton prices are falling due to glut in the market created by reduced demand from China. The New York cotton recorded steep fall whereas India, faced with bumper cotton crop, is also looking for markets to dispose of huge exportable surplus.
Brokers said that cotton prices the world over are falling but TCP operations may help increase cotton prices in domestic market which would force spinners to go for quality and cheap imported cotton.
The Karachi Cotton Association (KCA) spot rates remained steady at previous level.