Cotton prices drop on slow demand
KARACHI: The cotton market put up a dismal show on Saturday where prices tended to move lower and trading volume also declined owing to slow demand from textile industry and exporters.
Contrary to last three days’ brisk activity, trading volume suddenly slowed considerably, and prices also moved further down. The under tone was easy and outlook, uncertain.
The downward trend in domestic cotton market began in line with New York cotton market last week which was influenced by US Department of Agriculture report of bigger crop in front of falling export orders for US cotton. “I fail to understand as to why policymakers are not taking notice of the falling crop for the last four years,’ observed cotton analyst Naseem Usman.
He added that due to short crop, the country will have to spend huge foreign exchange to import around 4m bales to meet the consumption demand of textile industry.
Slow demand and falling cotton prices resulted into dismal performance and around Rs150 were lost per maund. The Karachi Cotton Association, however, kept its official spot rates pegged at overnight level.