MULTAN: Slow trading was visible on the cotton market on Friday as sellers were reluctant to enter in deals at the prices being offered. The Karachi Cotton Association increased its spot rate by Rs50 to Rs9,000.

“Ginners with good quality cotton stocks are not willing to go for deals as they believe prices will cross the Rs10,000 mark. The market is faced with short crop while imports will also be costlier,” cotton expert Syed Muddabir Shah said.

“Average daily trade volume during previous years in these days was between 10,000-12,000 bales but this year it is hardly between 5,000 to 7,000 bales,” he said.

Shah noted that currently markets are focused on the outcome of US-China meeting over tariff issue. If things go well and China seeks to purchase American cotton, prices will further increase, he added.

According to the US export and sales weekly report, Pakistan emerged as the second largest buyer of American cotton last week with 24,400 bales. Vietnam was on top with 97,600 bales. Net export during last week to Pakistan stood at 58,900 bales – the highest among other countries.

There was a decrease of 38 per cent in the sale of American cotton as compared to last week while the exports decreased by 6pc.

The following deals were reported to have changed hands on ready counter: 400 bales, station Sadiqabad, at Rs9,400; 600 bales, Lodhran, at Rs9,250; 200 bales, Burewala, at Rs9,200; 600 bales, Fort Abbas, at Rs9,200; 2,000 bales, Rahim Yar Khan, at Rs9,175; 200 bales, Bahawalnagar, at Rs8500; 200 bales, Khanewal, at Rs8,200; 400 bales, Liaquatpur, at Rs9,100; and 600 bales, Feroza, at Rs9,000.

Published in Dawn, January 11th, 2020