Commodities: Cotton prices under pressure
KARACHI: Cotton prices came under pressure in line with world markets on Thursday. However, activity remained brisk on strong demand from spinners who replenished their stocks at current prices.
Floor brokers said that as most leading world cotton markets were easy on slow demand under the lead of New York cotton market, the domestic market also came under physiological impact.
Reports circulating in the trading ring suggested that Faisalabad cotton yarn market, which is the country’s largest yarn market, was experiencing slow-off take of yarn from the value-added sector.
Cotton prices fell as a result despite the fact that spinners remained in the forefront of the buying spree and kept booking big-lot deals throughout the session as the flow of quality phutti (seed cotton) is in full bloom.
They further said that long closure ahead of Chinese markets because of a festival was another factor which slowed down trading activity in cotton as well as yarn markets.