KARACHI: Cotton prices on Monday moved lower in sympathy of falling trend on the world markets.
Rising temperature between United States and China over tariffs has been a major factor dampening sentiments in commodity markets the world over.
Furthermore, sluggish performance by the yarn market also kept buyers away from the trading ring. Barring few needy spinners and some exporters the market remained devoid of much activity, brokers said.
Mounting tensions between India and Pakistan has also shaken up confidence, brokers added.
The New York and Indian cotton markets continued to move lower. The Chinese market remained closed on account of mid-autumn festival.
Due to falling cotton prices on ready counter the official spot rates were also lowered by the Karachi Cotton Association (KCA) – a strong indicator that the market is operating under global pressure.
Falling price trend – which entered into cotton market last week – continued even today (Monday) and the accumulated effect in prices have gone up to Rs300-400 per maund.
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Many deals on ready counter were finalised below Rs8,000 mark and were quoted around Rs7,950 to Rs7,900 per maund, brokers said. Trading volume also shrank as buyers took a cautious approach.
However, phutti prices moved against the trend and recorded modest gains. Sindh variety was quoted between Rs3,700-3,900 per 40kg, Punjab quality in the range of Rs3,600-3,850 and Balochistan was at Rs3,900-4,100 per 40kg.
The following deals were reported to have changed hands on ready counter: 1,000 bales, Shahdadpur, at Rs7,950-8,000; 1,000 bales, Tando Adam, at Rs8,000; 1,000 bales, Khairpur, at Rs8,150-8,200; 200 bales Ahmedpur East, at Rs8,125; 600 bales, Haroonabad, at Rs8,050-8,150; 400 bales, Burewala, at Rs8,090-8,100; 200 bales, Chishtian, at Rs8,100; 400 bales, Layyah, at Rs8,100; and 400 bales, Mian Channu, at Rs8,200.
Published in Dawn, September 25th, 2018