MULTAN: The coronavirus pandemic is impacting all commodity markets including cotton where trade remained slow and restricted on Tuesday. The Karachi Cotton Association kept its spot rate unchanged at Rs8,900.

Cotton analyst Naseem Usman said mill owners are considering closing factories as stock volume is being increased and godowns are almost filled to the brim. He noted that that though trading has slowed down, millers are also hiding deals.

Sindh government has announced to close the government offices from Thursday which will ultimately affect trading activities, he said, adding that uncertainty will continue to prevail for a while.

Cotton expert Syed Muddabir Shah said phutti (seed cotton) arrival is underway but in very small quantity and poor quality.

He said that mills are facing difficulties and are offering delayed payments. “However, ginners are not ready to sell cotton on delayed payments for a long time as banks are not allowing them to do so. They are ready to sell on short time delay payment or are suggesting the payment through local letter of credit (LC) which will also satisfy the banks as well,” he added.

The following deals were reported to have transpired on ready counter: 200 bales, Dera Ghazi Khan, at Rs8,825; 200 bales, Haroonabad, at Rs8,500; 400 bales, Liaquatpur, at Rs8,700; and 200 bales, Khanewal, at Rs8,125.

Published in Dawn, March 18th, 2020