Falling cotton prices attracted some buying on Thursday but the market mostly remained dull. Overall undertone was weak and outlook uncertain.
The last three day’s general lethargy came to an end as renewed buying at the lower level was noted. Falling cotton prices attracted some spinners who eagerly replenished their stocks.
However, the cotton yarn market continues to be sluggish as the value-added sector is keenly observing international markets where a weak US dollar against other major currencies continues to depress commodity prices. Meanwhile, Pakistan Cotton Ginners Association (PCGA) Chairman Haji Mohammad Akram appreciated the Plant Protection Department’s move to stop entry of cotton through land routes as this will disallow contaminated cotton to enter the country. He also urged the department to strictly monitor cotton being imported through sea route.
He was highly critical of the government’s decision to remove tax and duties on import of cotton. “This is damaging growers and ginners’ interest as they still hold substantial stocks of cotton,” he said.
The world leading cotton markets also witnessed some revival with New York cotton managing to partially recover from recent losses. The Chinese and Indian markets also recovered. The Karachi Cotton Association (KCA) spot rates were steady at overnight level. The following deals were reported to have changed hands on ready counter: 6,598 bales, Daharki, at Rs7,000; 600 bales, Saleh Pat, at Rs6,600; 418 bales, Kotri, at Rs5,800; 920 bales, Mirpurkhas, at Rs5,100; and 1,000 bales, Yazman, at Rs7,300.