KARACHI: Trading activity picked up on renewed buying from some needy spinners on Monday. However, overall sentiment remained subdued.
A weak US dollar against major foreign currencies is being reckoned as the main reason behind the decline in international cotton markets.
The US Department for Agriculture has forecasted lower cotton production for India and higher for China. However, the worrisome fact is that the USDA is estimating lower world cotton consumption and less cotton exports from the US, which is likely to result in higher end stocks of cotton.
Locally, sluggish demand for cotton yarn impacted cotton prices adversely as spinners were reluctant to go for ‘long’ position.
Ginners are also worried about unsold cotton stocks, brokers added. These factors mostly worked against market sentiment the world over where most of the markets closed easy, brokers added.
Falling cotton prices also pushed down phutti (seed cotton) prices, which were quoted in the range of Rs2,400-3,100 for Punjab quality and Rs2,500-3,200 for Sindh variety per 40kg.
The Karachi Cotton Association (KCA) spot rates were firm at week-end level at Rs7,000 per maund.
The following deals were reported to have been fianalised on ready counter: 200 bales, Mirpur Mathelo, at Rs7,250; 400 bales, Daharki, at Rs7,100; 400 bales, Khanpur Maher, at Rs7,100; 6,900 bales, Haroonabad, at Rs5,300 to Rs6,850; 1,176 bales, Hasilpur, at Rs6,800; 1,000 bales, Faqeerwali, at Rs6,400 to Rs6,450; 800 bales, Yazman, at Rs6,150; 600 bales, Marrot, at Rs6,100; and 200 bales, Chichawatni, at Rs5,300.
Published in Dawn, February 13th, 2018