KARACHI: Attracted by lower cotton prices on Friday, many textile spinners tried to cover up their short-term needs thereby generating moderate to active trading activity.
Most of the leading world cotton markets also performed much below their average activity. Interestingly, the new cotton production estimates placed by the Cotton Association of India have further reduced cotton production to 33 million bales from the previously estimated 33.5m bales and original estimates of 40m bales.
However, it was interesting to note that even crop reduction could not induce buying and Indian cotton moved lower by Rs100 per candy (356lb). The US cotton sales during the last week also recorded a fall.
Cotton analysts believe that slow offtake of cotton yarn from domestic and world market is keeping the commodity’s trade depressed.
As a result, only some needy spinners were seen in the trading ring but their interest also remained restricted to short-term covering. Prices also remained under pressure.
The Karachi Cotton Association spot rates were firm at overnight level of Rs8,600 per maund.
The following deals reported on ready counter: 2,600 bales, Rahimyar Khan, at Rs8,850; 1,000 bales, Ahmedpur East, at Rs8,600; 400 bales, Fort Abbas, at Rs8,300; 500 bales, Chichawathni, at Rs8,100; 200 bales, Hasilpur, at Rs7,775; 800 bales, Maroot, at Rs8,000 and 400 bales from Moongi Bangla were done at Rs7,700.
Source: The Dawn, Pakistan Saturday, 09 February 2019