Commodities: Sluggishness prevails on cotton market
MULTAN: In the absence of selling interest on the part of ginner, the cotton market on Tuesday remained listless. The Karachi Cotton Association kept its spot rate unchanged at Rs9,000.
The availability of quality cotton is becoming difficult with each passing day and millers are ready to pay higher prices. However, there is reluctance from the ginners’ side.
Talking to Dawn, cotton experts said the situation will become clear in the next few days. Although millers are willing to buy quality cotton, ginners are least interested in selling their stocks until the outcome of US-China tariff negotiations, market sources said. Another reason is the fall in cotton production which means prices will move up in near future, they added.
Experts said pink bollworm caused sizeable damage to the cotton crop this year. There is an estimated fall of 2 million bales due to the pest attack in Sindh and Punjab, they added.
Meanwhile an increase of up to Rs1.5 per kg was reported. Spinning mills are reluctant in the booking of coarse count yarn at this point. It is being expected that soon the tariff issue is resolved between China and the US, demand for coarse count yarn from Chinese companies will go up.