KARACHI: The cotton market turned easy on Wednesday as buyers withdrew to the sidelines. The undertone remained easy and outlook uncertain.
Floor brokers said that falling crude oil and cotton prices on the world market have taken a heavy toll on domestic cotton where phutti (seed cotton) prices came down in front of poor off-take.
Reports that New York cotton prices have declined below 60 cents per lb for all the future contracts sent shockwaves throughout the world markets, Karachi cotton being no exception, brokers said.
Moreover, a weeklong closure of Far East and Chinese markets on account of Lunar New Year also depressed the situation as demand for cotton yarn plummeted, leaving the spinning industry with huge inventory, they added.
The sudden turn in the trend from buyers’ to sellers’ market directly hit phutti which came down by Rs200 per 40kg. Ginners with unsold cotton stocks are currently looking for buyers to dispose of their stocks before the start of hot weather.
Meanwhile, New York cotton market moved lower to touch a record low at 58.64 US cents per lb for maturing March contract, while all other future contracts also closed lower for second straight day.
The Karachi Cotton Association (KCA) left its spot rates unchanged at overnight level.
Major deals on ready counter were: 400 bales from Hasilpur (Rs4,800), 1,000 bales from Yazman Mandi (Rs5,500), 400 bales from Fort Abbas (Rs5,550) and 1,000 bales from Rahimyar Khan (Rs5,625).
Courtesy : Dawn News