KARACHI: Easy conditions prevailed on the cotton market on Thursday as buyers remained on the sidelines because of slow demand for cotton yarn and highly erratic dollar-rupee parity.

Floor brokers said rapid appreciation in the rupee’s value has disturbed export trade and manufacturing cost of textile industry which purchased cotton earlier in the season at higher price.

They added that much of the cotton inventory held by the spinning industry had been purchased at around Rs7,000 per maund, but it has now come down to 6Rs,000 per maund. While making exports costlier, the revaluation of the local currency has also reduced raw material prices.

Consequently, the export industry has been hit on two accounts in a short period — costlier exports and high priced raw material inventory, and it would take some time before this situation is over, brokers added.

On the world cotton markets, the New York cotton recovered where all future contracts finished with fresh gains.

The Karachi Cotton Association (KCA) spot rates were steady at previous level and trading on ready counter was dull.

The following deals were reported to have changed hands on ready counter: 2,600 bales, Rohri, at Rs5,900; 200 bales, Dharki, at Rs6,325; 500 bales, Chundko, at Rs6,375; and 200 bales, Chichawatni, at Rs5,850.