Commodities: Trading slumps on cotton market
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.