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Published 15 Jan, 2020 07:14am

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.

Phutti (seed cotton) prices in both Sindh and Punjab remained between Rs3,200-4,800.

The following deals were reported to have changed hands on ready counter:

400 bales (phutti from Baloch­istan), station Chi­cha­watni, at Rs9,350; 600 bales, Fort Abbas, at Rs8,650; 400 bales, Haroonabad, at Rs9,250 (conditional); 600 bales, Sadiqabad, at Rs8,925; 400 bales, Baha­walpur, at Rs8,450; and 200 bales, Faqirwali, at Rs8,600.

Published in Dawn, January 15th, 2020

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