Cotton trade listless

Karachi

The cotton market remained eventless on Thursday as traders stayed on the sidelines ahead of the federal budget announcement.

Not a single transaction was reported during the entire session.

Dealers said the bearish sentiments continued to prevail due to slackened demand for cotton yarn from buyers.

The market is awaiting the budget 2016/17 due on Friday (today).

“Traders are closely watching what incentives are expected to be announced by the government to enhance cotton output for the next fiscal year, starting on July 1,” said a broker at Karachi Cotton Exchange.

Pakistan is facing shortage of cotton due to crop failure in 2015/16 season.   Cotton production dropped to 9.768 million bales during the 2015/16 season, ended April mainly due to bad weather conditions and severe pest attacks.