KARACHI: The cotton market remained in bearish note on Wednesday as buyers and sellers stayed away from the trading ring, which also caused decrease in prices.
According to floor brokers, slump in commodity markets of the world was also keeping cotton prices under pressure. The slow off-take of cotton yarn and falling prices of polyester fibre is also hurting cotton prices.
The official spot rate was unchanged at Rs4,850. In the ready session, around 7,000 bales of cotton changed hands between Rs4750 and Rs5075, the dealers said. The seed cotton rates in Sindh dropped at Rs1700 and Rs2300, in Punjab prices also fell at Rs1700 and 2550, they said.
New York cotton also touched rock bottom of the season where maturing March 2015 contract closed 1.5 cents lower to touch 57.79 cents a lb. All the other future contracts also recorded fresh falls.
Ginners are reportedly facing financial crunch as the state-owned Trading Corporation of Pakistan, which procured around 94,000 bales, has yet to make payments. The Karachi Cotton Association (KCA) spot rates were unchanged at previous level.
Major deals finalised on ready counter were: 400 bales Faqirwali at Rs4,750, 1,000 bales Fort Abbas at Rs4,775 to Rs4,850, 600 bales Haroonabad at Rs4,800, 400 bales Lodhran at Rs4,800, 500 bales Yazman Mandi at Rs4,825, 400 bales Hasilpur at Rs4,800, 1,400 bales Mianwali at Rs5,050, 1,200 bales Rahimyar Khan at Rs5,050 and 400 bales Fazilpur at Rs5,075.
