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KARACHI: Downslide in cotton prices gained momentum on Monday following weaker demand for yarn from traditional buyers particularly China and Hong Kong.
The correction in cotton prices, which crept in last Saturday, became more conspicuous as trading activity suddenly shrank in the background of weaker demand from world buyers of cotton yarn. Trading activity on ready counter suddenly declined as buyers withdrew to the sidelines.
Trading activity on ready counter suddenly declined as buyers withdrew to the sidelines.
According to market sources, during the recent cotton related events held in China, placing of cotton yarn orders was relatively slow which created panic for suppliers like India and Pakistan.
As a result, many leading spinners and big textile mills have adopted a cautious approach and restricted their buying for the time being, said a broker while speaking to Dawn.
However, US cotton suddenly took a turn for positive overcoming downslide as prices rebounded on reports that due to unfavorable weather conditions. In many cotton growing states across the US, cold weather has adversely affected the crop. Most cotton plants are at bolling stage at this time of the season and require hot weather to turn in to fibre.
The Karachi Cotton Association spot rates were revised downward by Rs150 to Rs8,750 per maund.
The following deals were reported to have changed hands on ready counter: 1,000 bales, Shahdadpur, at Rs8,400-8,125; 400 bales, Rohri, at Rs8,700; 2,000 bales, Nawabshah, at Rs8,475-8,500; 600 bales, Ghotki, at Rs8,970; 1,600 bales, Khairpur, at Rs8,700-8,800; 1,400 bales, Rajanpur, at Rs8,800; 800 bales, Haroonabad, at Rs8,600; 6,000 bales, Khanpur, at Rs8,900; 1,000 bales, Sadiqabad, at Rs8,900; 200 bales, Hasilpur, at Rs8,800; 600 bales, Rahim Yar Khan, at Rs8,900; and 1,200 bales, Fort Abbas, at Rs8,760.
Published in Dawn, October 23rd, 2018
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