KARACHI: Uncertainty gripped the cotton market on Wednesday as traders remained cautious and avoided entering into big deals.
The market was caught up with the news of currency fluctuation, following reports of Saudi Arabia extending $6 billion financial assistance to Pakistan.
Earlier in the day, prices moved lower on reports of rupee gaining some ground against the dollar. Cotton prices shed around Rs150-200 per maund and phutti (seed cotton) lost Rs150-150 per 40kg.
Brokers said the yarn and fabric markets were also slow as demand from the value-added textile industry declined.
“There is a greater possibility that commodity markets will stabilise in a couple of days after witnessing behaviour in the currency market,” observed cotton analyst Naseem Usman.
The world leading cotton markets were mostly under pressure mostly while New York cotton reported stabilised.
The Karachi Cotton Association (KCA), however, adjusted spot rates up by Rs50 to 8,850 per maund.
The following deals were reported to have changed hands on ready counter: 1,400 bales, station Saleh Pat, at Rs8,900; 1,600 bales, Rohri, at Rs8,850-8,900; 1,000 bales, Daharki, at Rs9,000-9,100; 1,000 bales, Ghotki, at Rs9,000-9,100; 1,800 bales, Khanewal, at Rs8,600-9,000; 3,000 bales, Rahim Yar Khan, at Rs9,000; 1,000 bales, Sadiqabad, at Rs9,000; 2,000 bales, Fazilpur, at Rs8,950-8,975; 2,400 bales, Khanpur, at Rs8,950; and 1,000 bales, Bahawalpur, at Rs8,750-8,850.
Source: The Dawn, Pakistan Thursday, 25 October 2018