KARACHI: Declining cotton prices in the international market have its negative impact over local prices, which resulted in reduction of Rs100 per maund in the official spot rate on Thursday, said a dealer.

The spot rate decreased to Rs5,900 per maund (37.324kg) and Rs6,109 per 40kg, while ex-Karachi rate fell to Rs5,830 per maund and Rs6,239 per 40kg after addition of Rs130 as upcountry expenses, he said.

An analyst said that consumers of yarn and fabric declined worldwide, which resulted in negative impact over the lint prices in the international market. “The major reason for this decline is recession in the European market,” he said.

Another day of major decline was witnessed at New York cotton market on Wednesday, while China cotton index also fell by several points.

Karachi cotton market recorded dull trading of around 2,500 bales in between Rs4,800 to Rs5,900 per maund. Multan’s 400 low quality bales were sold at Rs4,800 per maund, 700 bales of Tando Mohammad Khan at Rs5,050, an exporter sold 1,000 bales to a mill at Rs5,400, while 400 bales of Sahiwal were sold at Rs5,800 to Rs5,900 per maund.

Courtesy: The News