KARACHI: Prices continued to fall on the cotton market on Tuesday amid lack of buying interest.

Except small lot deals by some mills, the market remained devoid of activity. Cotton prices on the ready counter also moved below Rs5,000 psychological mark.

Market analysts said the lowering of discount rate by 100 basis points to 8.5 per cent also did not have its impact which indicates that issues like sluggish off-take of cotton yarn and grey fabric are major irritants for millers.

Many millers are avoiding to build up their stocks expecting further fall in the prices of polyester fibre.

However, the world cotton markets show some stability where New York cotton recovered for all the future contracts.

The Karachi Cotton Association (KCA) reduced its spot rates by Rs100 to Rs4,650 per maund.

The following deals were finalised on ready counter: 400 bales Mirpur Khas at Rs4,100, 400 bales Shahdadpur at Rs4,100, 1,000 bales Kumb at Rs4,600, 200 bales Saleh Pat at Rs4,600, 200 bales Rohri at Rs4,600, 200 bales Dharanwala at Rs4,600, 400 bales Faqirwali at Rs4,600, 600 bales Haroonabad at Rs4,625, 400 bales Gojra at Rs4,800 and 100 bales Vehari at Rs4,800.

Published in Dawn January 28th, 2015

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