KARACHI: The cotton market was under pressure on Friday as buyers remained on the sidelines. Globally, the news of US slapping new tariffs on imports from China sent shock waves in world markets and affected cotton trade.
Textile spinners on their part also avoided to enter into big deals showing concern over lint quality that may had been affected by recent heavy rains in Sindh and Punjab.
Moreover, spinners are also reluctant to hold ‘long position’ by building up stocks in order to avoid payment of high mark up against bank loans, brokers.
The non-availability of vehicles – which are presently engaged in the haulage of sacrificial animals from rural areas to urban cities ahead of Eidul Azha – has also forced textile mills not to enter into big deals, brokers added.
The world leading cotton markets closed easy under the lead of New York cotton which recorded steep fall for all future contracts.
The Karachi Cotton Association (KCA) spot rates were static at overnight level at Rs8,400 per maund.
The following deals were reported to have changed hands on ready counter: 1,200 bales, Shahdadpur, at Rs8,400; 800 bales, Tando Adam, at Rs8,400; 400bales, Sanghar, at Rs8,400; 400 bales, Hasilpur, at Rs8,500; and 400bales, Vehari, at Rs8,400-8,475.
Source: The Dawn, Pakistan Saturday, 03 August 2019