Trading activity remain slow at cotton market

Trading activity at the Karachi Cotton Exchange on Tuesday remain slow, as better grades of lint remained in focus amid strong physical prices. Traders said that the volumes remained moderate as buyers made deals for better and second grade of lint to meet their domestic as well as international commitments of yarn and cloth.

Spot rates remained unchanged. The spot rates remained unchanged at Rs6,700/maund (37.324kg) and Rs7,180/40kg. Ex-Karachi rates also stood firm at Rs6,835/maund and Rs7,325/40kg after an addition of Rs135 and Rs145 as upcountry expenses, respectively.

According to an analyst, the new crop would be available after three months with lots arriving from Sindh in July, while cotton arrivals from Punjab would be delayed because of the late sowing.

The government is trying to boost the cotton crop by discouraging other crops in cotton belts.

KCE witnessed only two transactions in between Rs6,400 and Rs7,000/maund. Kotri’s 1,200 bales were sold at Rs6,400/maund and 600 bales of Khanpur exchanged hands at Rs7,000/maund.

In the domestic market around 200 bales of Rahimyar Khan changed hands at Rs 6,600 per maund, 200 bales of Multan at Rs 6,575 per maund, 200 bales of upper Sindh at Rs 6,300 per maund, 200 bales of southern Punjab at Rs 6,575 per maund and 200 bales of Sanghar at Rs 6,725 per maund.