MULTAN: Trading activity on the cotton market slowed down considerably on Monday due to widespread rains in cotton growing areas of Punjab and closure of markets. The Karachi cotton association kept its sport rate unchanged at Rs8,900.

Cotton expert Syed Mudabbir Shah said the Heimtextil — the biggest international trade fair for home and contract textiles — will get currently underway in Germany from January 7. “Many textile mills from Pakistan are participating in the fair. The country has a strong chance of winning a large number of orders at the event,” he added.

Locally, Shah noted, that trading could not pick momentum on Monday due to rains in almost all cotton growing areas of Punjab while cotton markets were also closed.

Ginners with stocks of good quality cotton are reluctant to sell their stocks on the prices being offered now. “They [ginners] will sell their stocks from February onwards when prices are likely to be higher,” he added.

This year Pakistani mills were one of the largest buyers of American cotton. “There are reports that cotton being imported from the US has quality issues and this is making mill owners consider purchasing premium lint from local market,” Shah explained.

Phutti (seed cotton) prices remains between Rs3,800-4,800 in Punjab and Rs3,000-4,650 in Sindh. Polyester yarn prices increased by Rs2 while cotton yarn went up by Rs2.50. Market sources noted that there will be sizeable increase in the prices of siro yarn (used in jeans manufacturing) within the next couple of days.

The following deals were reported to have changed hands on ready counter: 200 bales, station Ghotki, at Rs9,200; 200, Haroonabad, at Rs9,000; 200 bales, Fort Abbas, at Rs8,550; 1,000 bales, Faqirwali, at Rs8,450; 1,400 bales, Lodhran, at Rs9,000; 400 bales, Chishtian, at Rs8,350; 1,800 bales, Rahim Yar Khan, at Rs9,125; 400 bales, Dera Ghazi Khan, at Rs8,250; and 600 bales, Layyah, at Rs8,300.

Published in Dawn, January 7th, 2020