Trading activity on the cotton market slowed down considerably on Monday
due to widespread rains in cotton growing areas of Punjab and closure of
markets. The Karachi cotton association kept its sport rate unchanged at
Rs8,900.
Cotton expert Syed Mudabbir Shah said the Heimtextil — the biggest
international trade fair for home and contract textiles — will get currently
underway in Germany from January 7. “Many textile mills from Pakistan are
participating in the fair. The country has a strong chance of winning a large
number of orders at the event,” he added.
Locally, Shah noted, that trading could not pick momentum on Monday due
to rains in almost all cotton growing areas of Punjab while cotton markets
were also closed. Ginners with stocks of good quality cotton are reluctant to
sell their stocks on the prices being offered now. “They [ginners] will sell
their stocks from February onwards when prices are likely to be higher,” he
added.
This year Pakistani mills were one of the largest buyers of American cotton.
“There are reports that cotton being imported from the US has quality issues
and this is making mill owners consider purchasing premium lint from local
market,” Shah explained.
Phutti (seed cotton) prices remains between Rs3,800-4,800 in Punjab and
Rs3,000-4,650 in Sindh. Polyester yarn prices increased by Rs2 while cotton
yarn went up by Rs2.50. Market sources noted that there will be sizeable
increase in the prices of siro yarn (used in jeans manufacturing) within the
next couple of days.
The following deals were reported to have changed hands on ready counter:
200 bales, station Ghotki, at Rs9,200; 200, Haroonabad, at Rs9,000; 200
bales, Fort Abbas, at Rs8,550; 1,000 bales, Faqirwali, at Rs8,450; 1,400
bales, Lodhran, at Rs9,000; 400 bales, Chishtian, at Rs8,350; 1,800 bales,
Rahim Yar Khan, at Rs9,125; 400 bales, Dera Ghazi Khan, at Rs8,250; and
600 bales, Layyah, at Rs8,300.
Source: The Dawn, Pakistan Tuesday, 07 January 2020