Trading activities were down as ginners not ready to lower prices

With Pakistani ginners not lowering prices of fine quality and the official spot rate remaining unchanged at Rs 4,850, no visible change was seen in the present outlook on the cotton market on Thursday.

Trading activity came down as ginners were not ready to oblige the mills because rates offered by mills were not matching with their psychological levels. Cotton analyst, Naseem Usman said that overall sluggish trend in the world market is also an adding factor behind the falling business.

Traders in Karachi said that fall in cotton prices was nearly a global phenomenon as in other international markets like the United States, China and India cotton prices remained under pressure. Yarn prices were also weak and limited buying of cotton by the mills was seen. Some exporters also probed the market to pick up lower grades of cotton.

Surplus cotton around the world, reported losses being incurred by domestic mills in yarn sales and tight money in the market have all added up to create a depressed condition in the cotton economy at large. Now Pakistan is projected to produce about 14.7 million bales (155 kgs) ex-gin this season (August 2014 / July 2015). Thus Pakistani mills are facing a pinch in their manufacturing and sales operations.

In the ready session, around 5,000 bales of cotton changed hands between Rs 4700 and Rs 5125, they said. The seed cotton rates in Sindh were at Rs 1700 and Rs 2300, in Punjab prices were at Rs 1700 and 2550.

The following deals reported: 1400 bales from Burewala at Rs 4700, 200 bales from Faqirwali, same number from Chichawatni at the same rate, 400 bales from Ahmedpur at Rs 4800, 200 bales from Jalalpur at Rs 5000, 1600 bales from Rahim Yar Khan at Rs 5000-5100, 2000 bales from Mian Chano at Rs 5000-5125 and 200 bales from Mianwali at Rs 5100.