Trading activity slowed down amide increase in cotton prices

Amid increase in cotton prices, trading activity at the cotton market slowed down on Monday. Although there is strong demand for cotton yarn in the domestic market, falling exports of textile goods worried spinners who preferred to stay away from the trading ring.

The Karachi Cotton Association raised its cotton rates by Rs50, to Rs6,750 per maund (around 37kg)

Secondary buyers made deals for all grades of lint according to their immediate needs on back of grade issue and in anticipation of decline in spot rate.

The textile sector is facing paucity of better grades, that would put positive impact on general prices besides its market valuation, said Shakeel Ahmad a fibre analyst.

The recent weather in cotton growing belt in Punjab put cottonseed picking on steady pace.

Major deals on the ready counter were: 1,200 bales from Sadiqabad at Rs7,000 a maund, and 400 bales from Rahimyar Khan at Rs7,000

On global front, prices on the Indian cotton market rose by Rs400 per candy (356 kilograms) while that of Chinese cotton remained firm.

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