KARACHI: The overnight correction in cotton prices extended into second day on Thursday with prices falling below Rs7,100 per maund (around 38 kilograms) on panic selling from ginners coupled with profit-taking.
The downtrend witnessed on global cotton markets at the start of the week continued to have an adverse impact on the domestic market where ginners seemed to be in a hurry to sell their stocks at current prices.
The price of phutti (seed cotton) also declined to Rs3,000-3,350 per 40kg in Sindh and Rs3,000-3,450 in Punjab.
Though some stability was noted in the New York cotton market, the Indian cotton remained under pressure owing to intervention by the Cotton Corporation of India (CCI), market sources said.
Moreover, reports that China has slowed down cotton yarn imports also adversely impacted the cotton prices, brokers said. However, strong demand from some spinners persisted which averted major downfall in prices.
Meanwhile, rains in some parts of Punjab continue to disturb phutti supply. In contrast, phutti flow is gradually increasing in Sindh.
The Karachi Cotton Association reduced its spot rate by Rs50, to Rs6,600 per maund.
The trading activity on ready counter, however, remained fairly brisk on sustained demand from spinners and some exporters. Major deals included: 2,000 bales from Mirpur Khas (at Rs6,700 per maund), 1,600 bales Shahdadpur (Rs6,700), 1,000 bales Kotri (Rs6,700), 2,000 bales Tando Adam (Rs6,700 to Rs6,800), 2,600 bales Sanghar (Rs6,700 to Rs6,800), 1,000 bales Hyderabad (Rs6,700 to Rs6,800), 200 bales Haroonabad (Rs7,000), 500 bales Chichawatni (Rs6,900) and 400 bales Rahimyar Khan (Rs6,900).
Courtesy : Dawn News