Cotton sluggish due to poor demand & yearly bank closings

03 Jan '06

2 min read

Business activity remained sluggish at the Karachi cotton market during the last week, possibly due to yearly closing of the banks, coupled with poor international interest.

Spinners showed interest in buying quality lint around Rs 2425 during the week. However, possibility of increase by another Rs 100 per maund in the next few days, cannot be ruled out said market sources.

Trading in about 15000 bales took place, said a senior broker.

Cotton stocks at ginneries was estimated at about 0.8 million bales for the current fortnight.

Brokers sought report of cotton imports by State Bank of Pakistan and Pakistan Cotton Growers Association (PCGA) that would enable farmers and ginners know about the market position.

Trade was dominated by ginners of Sindh offering fine quality for marginally higher price. The leading mills and spinners improved their positions, while private commercial exporters shied away from the markets.

During last week, on Wednesday the spot rate was Rs 2365 per maund, registering a Rs 10 drop. The KCA spot rate remained at Rs 2375 per maund on Saturday, whereas physical market prices were between Rs 2300 per maund and Rs 2425 per maund.

More than 3000 bales were traded were traded on Saturday. Trading for 43000 bales took place during the week.

The trading of 1600 bales of upper Sindh took place at Rs 2425 per maund on Saturday, Rs 2415 per maund for 200 bales of Rahimyar Khan and Rs 2400 per maund for 200 bales of Mirpurkhas, as per KCA records.

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