MULTAN: Cotton trading on Monday remained extremely slow due to continuous currency fluctuation. The Karachi Cotton Association kept its spot rate unchanged at Rs8,600.

Brokers said ginners are showing little interest over the prices being offered by buyers. Following an increasing trend in the dollar value on daily basis, ginners are shying away from deals.

On their part, the ginners are waiting for what would be the prices of new crop which would be available in the market by mid-June, brokers added.

However, an increase in interest rate has the ginners worried. As soon as the government announced its new monitory policy, ginners have put a halt to dealings as increased interest rate will affect the cotton market directly.

According to market sources, about 80 per cent cotton market depends on the banking sector to get loans for their stocks. Increase in interest rate will hamper their capacity to stock cotton, they added.

The following deals were reported to have changed hands on the ready counter: 600 bales, Khanpur, at Rs9,100 (on one month credit); 400 bales, Bahawalpur, at Rs8,700; 200 bales; Alipur, at Rs8,925; 180 bales, Lodhran, at Rs8,000; 400 bales, Uch Sharif, at Rs7,900; and 290 bales, Khanewal (low quality), at Rs7,700.

Published in Dawn, May 21st, 2019