KARACHI: The cotton market turned easy on Monday amid lack of trading interest from spinners, despite the fact that world cotton markets recorded fresh gain on heavy buying.
Floor brokers said that apparently there was no reason for sudden reversal in cotton prices in the domestic market which is contrary to developments taking place in the world cotton markets.
Reports that China is going to dispose of huge stocks of cotton early next month should have depressed prices but the current behaviour in world was contrary to the expectation of the market.
Cotton analysts believe this could be due to the fact that China normally enters world market with 10 US cents high rate per lb over the prevailing world market rates. Consequently, it is being felt that very little impact would be witnessed on world cotton prices.
The Karachi Cotton Association (KCA) spot rates were unchanged at weekend level. Major deals on ready counter were: 400 bales from Ranipur (at Rs5,150 per maund), 400 bales Chani Goth (Rs5,300) and 400 bales Jalalpur (Rs5,500).
Meanwhile, the New York cotton market opened on high note and prices moved higher by two cents to 62 cents per lb, while prices in China also closed higher.