Falling trend persisted on the cotton market on Saturday as prices showed softness because mills kept to the sideline in expectations of further decline in the rates, dealers said. Karachi Cotton Association (KCA) official spot rate was unchanged Rs 10,500, they said.
In Sindh and Punjab phutti price of low type was at Rs 3000 and that of superior type at Rs 3500, they said. In ready business nearly 1100 bales of cotton changed hands between Rs 9,000-9750, they added. The main factor behind the slow business is sudden fall in demand in the international market, which pushed the rates down in both the local and global market, analysts said.
Many cotton traders are importing cotton due to lower rates and on other several are taking advantage of golden change because ginners relaxed, adopting flexible attitude by lowering the rates after sharp fall in the world market and expectations for bumper cotton production in the coming season, they said.
The ginners have started selling on the cheaper rates after giving up the idea of higher returns as they have earned some weeks ago, they said. Cotton yarn prices came down as demand is not there as a result spinning and textile mills were keeping shutters down, hurting cotton business and causing increase in the unemployment in the country, they said.
On Friday, the US cotton market was closed for the Good Friday holiday. Cotton No 2 will reopen electronic trade at its regular opening time on Monday. The following deals were reported: 600 bales of cotton from Liaquatpur sold at Rs 9750, 240 bales of cotton from Haroonabad at Rs 9200 and 260 bales from Sadiqabad at Rs 9000, they added.
Comments
Comments are closed for this article.