KARACHI: The cotton market turned easy on Tuesday in line with global trend where New York cotton finished below benchmark rate of 60 US cents per lb. The undertone remained easy and outlook uncertain.
Floor brokers said that reports of slower performance by some European economies triggered selling pressure in major world markets. Besides, a three-day closure at the start of lunar calendar in the Far-East and China also depressed sentiment.
Brokers said the market should have been brisk because of strong demand from spinners and short crop, but global factors have overshadowed domestic events. According to reports, the capital market in Greece has touched a 25-year low, sparking panic in other weaker economies of the European Union.
Besides import of cotton from India, the value-added textile industry has started importing cotton yarn as well under DTRE (duty and taxes remission on exports) scheme, brokers added.
The leading world cotton markets, including New York cotton, closed lower where all the future contracts ended with fresh losses.
The Karachi Cotton Association (KCA) cut its spot rates by Rs50 to Rs5,350 per maund.
Major deals on ready counter were: 200 bales from Pak Pattan (Rs4,710), 400 bales from Vehari (Rs4,850), 600 bales from Haroonabad (Rs5,300 to Rs5,500), 200 bales from Bahawalnagar (Rs5,350), 400 bales from Fort Abbas (Rs5,350 to Rs5,425), 200 bales from Ghazi Goth (Rs5,400), 400 bales from Laiquatpur (Rs5,475), 400 bales from Mianwali (Rs5,575), 400 bales from Khanewal (Rs5,625) and 400 Darya (Rs5,650).
Courtesy : Dawn News