Cotton prices came under renewed pressure in the absence of buying interest. The market is likely to remain unstable, unless dollar-rupee pars settle down.
At present, the entire export trade is in despair.
Cotton trading has been adversely affected due the unstable currency market with buyers showing no interest to make fresh deals on Monday. The Karachi Cotton Association (KCA) reduced its spot rates by Rs50 to Rs6,700 per maund.
According to official figures, only one deal of 600 bales from Shahpur Chakar was reported to have changed hands at Rs6,000 on ready counter
Spinners already faced with slow off-take of cotton yarn avoided to build upon their cotton inventory.
Besides, the current cotton season is also at its fag end and very little quantity of quality cotton is now available in the country. Only small millers with short supply were seen in the trading ring, but they too failed to get hold of quality lint.
Prices of seed cotton in Sindh and Punjab per 40 kg were unchanged at Rs 2300-3100.
According to cotton analyst, Naseem Usman, the direction of currency is not clear, as there are anticipations about the rupee's further climb versus the dollar, it may trade at Rs 95 during the week. If the government continued to provide dollars in the big way, so the rupee will be able to look ahead, otherwise, situation could be reverse.
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