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Downtrend continues on cotton market

Downtrend continues on cotton market

KARACHI: The downward trend in cotton prices entered into fourth straight session on Monday as spinners continued to operate cautiously amid slow cotton yarn demand.

The undertone remained easy and outlook uncertain as spinners are showing little interest in building up their stocks.

It is believed that cotton prices would further come down once phutti (seed cotton) flow from Punjab improves. “This could be a reason that spinners are marking time and seem to be in no hurry to replenish their stocks,” a broker said.

Phutti prices have come down to Rs3,000 to Rs3,300 per 40 kilograms. Despite the fact that ginners are keen to dispose of their stocks, spinners are currently playing it safe, brokers said.

Another factor which was adversely impacting cotton prices was the slow off-take of cotton yarn on the domestic and world markets which was keeping spinners cautious, brokers said.

According to some estimates, around 18,000 to 20,000 cotton bales are reaching the marketplace daily, but due to slow demand from spinners the prices remained under pressure.

The Karachi Cotton Association reduced its spot rates by Rs200 more to Rs6,200 per maund (around 38kg).

Major deals on the ready counter were: 3,000 bales from Mirpurkhas (Rs6,400 to Rs6,500), 3,000 bales Shahdadpur (Rs6,400 to Rs6,500), 3,000 bales Sanghar (Rs6,400 to Rs6,500), 2,400 bales Tando Adam (Rs6,425 to Rs6,500), 1,200 bales Hala (Rs6,425 to Rs6,500), 2,000 bales Hyderabad (Rs6,450 to Rs6,500), 1,000 bales Kotri (Rs6,450 to Rs6,500) and 800 bales Moro (Rs6,450 to Rs6,500).

Courtesy : Dawn News



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