MULTAN: Steady conditions prevailed on the cotton market on Tuesday as ginners were reluctant to sell the commodity at low prices. The Karachi Cotton Association, however, lowered its spot rates by Rs50 to Rs8,650.
Brokers said the strong demand for quality cotton will not let local prices fall contrary to downward trend on the international markets.
They said that needy mills have no other option but to purchase the commodity at the ginners’ asking prices.
“The spinners are willing to buy quality lint at prevailing prices to produce fine count yarn amid scarce availability of good quality cotton as unsold stocks lying with the ginners depleting fast,” they added.
They said that the prices of fine count yarn have also been increased, however there was slight fall in coarse count yarn rates.
Major deals on the ready counter were: 200 bales, Ghotki, at Rs9,500; 400 bales, Rahim Yar Khan, at Rs9,000; 640 bales (low quality), Khanewal, at Rs7,800; 800 bales, Khanpur, at Rs8,900; and 400 bales, Ahmedpur East, at Rs8,700.
“There are chances of increase in cotton consumption in near future,” they remarked.
Published in Dawn, May 15th, 2019