KARACHI: The cotton market turned lacklustre on Tuesday in line with world leading cotton markets where activity dipped and prices plummeted.

Trading resumed on a dull note, influenced by a steep fall in cotton prices internationally. The New York cotton prices plummeted by 2 cents per pound, while Indian cotton shed Rs300 per candy (356kg).

Normally, when crop is short, prices surge on strong demand, but currently despite a short crop and lower prices, demand is suppressed in both India and Pakistan, the brokers said.

They further added that the global factors are affecting the cotton trade in general adversely. The Karachi Cotton Association spot rates were unchanged at overnight level of Rs8,600 per maund.

Trading on ready counter remained extremely slow and only two transactions were reported to have changed hand: 400 bales from Mianwali were done at Rs7,800 and 600 bales, Haroonabad, at Rs7,700. 

Published in Dawn, February 13th, 2019