MULTAN: Listless conditions prevailed on the cotton market on Monday as buyers and sellers stayed away.

Shortage of quality cotton coupled with slack demand from spinners kept activity dull and dreary.

The Karachi Cotton Association lowered down its spot rate by Rs50 at Rs8,700.

Meanwhile, the cultivation of new crop Punjab is under way and experts are terming the weather condition favourable. They say per acre yield will affect if temperature crosses 40 degree Celsius and it will also hamper cultivation process.

Cotton analyst Mudabbir Shah said that China’s cotton future market plunged to three-year low. Similarly, the declining trending was prevailing on the New York Cotton Exchange.

He, however, of the view that local cotton prices were likely to stay firm amid speculations that the rupee may fall further against the dollar coupled with low stocks of quality lint with ginners. Similarly, the sowing process in the lower Sindh is in full swing while it has already been completed in the upper Sindh.

The following deals were reported to have changed hands on the ready counter: 200 bales, Ahmedpur East, at Rs8,800; 2,000 bales, Rahim Yar Khan, at Rs9,100; 600 bales; Bahawalpur, at Rs8,650; and 344 bales (low quality), at Rs7,500.

Published in Dawn, May 14th, 2019