Business on cotton market remained subdued as buying interest lessen

Due to long week-end on account of Eid-ul-Azha holidays, business remained passive on the cotton market on Tuesday, dealers said. Leading buyers kept on the sidelines. In the ready business, around 8,000 bales of cotton changed hands between Rs 4750 and Rs 4900.

In Sindh, seed cotton prices recovered overnight gains, rising by Rs 50 to Rs 2350 and Rs 2450 and in Punjab prices were at Rs 2300 and Rs 2450. While the official spot rate maintained overnight level at Rs 4,700, dealers said.

According to cotton analyst, Naseem Usman, mills and spinners were not looking interested in fresh buying during the last sessions but after heavy rains in Punjab, they feared about the damage of crop. Now, the direction of price-line will clear when the market re-open after holidays, other brokers said.

Some said that exports of textile products fell despite GSP-Plus, this factor is negative for the traders but some analysts hoping for rise in demand for cotton.

The following deals were reported to have changed hands as per dealers : 400 bales from Nawabshah at Rs 4750, 200 bales from Daur at Rs 4750, 2600 bales from Khairpur at Rs 4750-4800, 400 bales from Alipur at Rs 4850, 400 bales from Tonsa Sharif at Rs 4850, 400 bales from Pir Mehal at Rs 4900, 600 bales from Rajanpur at Rs 4900, 400 bales from Vehari at Rs 4900, 600 bales from Haroonabad at Rs 4900 and 800 bales from Mianwali at Rs 4900.