Cotton price edges lower KARACHI: The rapidly falling cotton rates on the world market pushed prices lower on the domestic market for second consecutive session on Wednesday. The undertone remained easy and outlook uncertain.
There seems to be no respite in downtrend in cotton prices on the world market under the lead of New York market which shed three US cents per lb in a single day.
Reports of China selling out of its reserved cotton stock to the local industry depressed the world markets where speculators rushed to sell their stocks to avoid losses.
As the Chinese spinning industry is going to get cotton from domestic stocks, their buying from the world market will come down and result in price crash, brokers said.
Moreover, with sudden climate change cotton crop in India and the United States is now being anticipated to be better and higher against earlier estimates when weather conditions were not favourable, brokers said.
Influenced by world development, cotton prices came down by Rs400-500 per maund (around 37 kilograms) while phutti (seed cotton) declined by Rs200 per 40kg. Sindh variety phutti is currently being quoted between Rs3,000 and Rs3,250 and Punjab quality between Rs2,900 and Rs3,250 per 40kg.
The Karachi Cotton Association cut its spot rate by Rs100, to Rs6,700 per maund.
Major deals on the ready counter were: 900 bales from Mirpurkhas (at Rs6,750 to Rs6,875), 600 bales Moro (Rs6,800), 600 bales Hyderabad (Rs6,800 to Rs6,850), 1,000 bales Shahdadpur (Rs6,700 to Rs6,880), 600 bales Sanghar (Rs6,850 to Rs6,900), 400 bales Pak Pattan (Rs6,875 to Rs6,900), 200 bales Burewala (Rs6,900), 200 bales Chichawatni (Rs6,950) and 200 bales Vehari (Rs6,900).