Selling pressure pulls down cotton prices
KARACHI: The cotton market on Saturday remained on a slippery path as prices moved lower amid sustained selling pressure.
However, towards closing stages some stability was noted as many ginners withdrew to the sidelines after overselling.
A crisis-like situation has prevailed on the market as prices touched rock bottom due to panic selling from ginners with huge stocks of phutti (seed cotton).
The sudden change in weather helped cotton crop to mature early, improving phutti arrival particularly in Punjab which earlier had a disturbed demand and supply equilibrium. However, the high supply has put pressure on cotton prices.
During the outgoing week, cotton prices came crashing down between Rs600 to Rs700 per maund on panic selling from ginners and phutti rates also tumbled down in the range of Rs300 to Rs400 per 40 kg.
The rapidly falling cotton prices attracted buying from spinners who availed the opportunity, resulting in brisk activity throughout the week.