Market sources said that since these are the last months of current cotton season, spinners have adopted a cautious approach. This has led to sharp drop in business volume. According to the figures released by the Pakistan Cotton Ginners Association, at present ginners are saddled with an unsold stock of 350,000 bales but bulk of it comprises poor quality lint. During the week, the private sector exporters registered fresh sale of 3,500 bales of lint with the Export Promotion Bureau bringing the total export sales to 621,498 bales. Meanwhile, the spinners have booked 206,000 bales of foreign lint of 480 lbs per bale.
Negotiations are underway for the import of few more lakh bales of lint.
During the week under review, the local yarn market remained somewhat depressed. The yarn prices declined following the three per cent recovery in rupee's value. The National Economic Coordination Committee has fixed the support price for phutti at Rs780 per 40 kg for the next cotton season which is Rs55 more than the present support price of Rs725. Last week, there was a recovery in international cotton prices. July contract of New York cotton rose from 40 cents per lb to 42.71 cents per lb.