Cotton prices continued decline for the second day owing to sluggish buying interest by spinners, dealers said. The official spot rate dropped further by Rs 100 to Rs 7400, they added. In the ready session, approximately, 2200 bales of cotton changed hands between Rs 6000-7000, they said.
Commenting on the continued decline in the prices, cotton analyst, Naseem Usman said that since the week started, rates dropped by Rs 200 because poor demand by spinners and partly because of sluggish demand in the international markets.
He also said that prices are under the influence of prevailing negative developments in global markets.
The ginners, who have little quantity of lint cotton were keen in fresh selling at above the psychological levels, they said. This factor is inhibiting spinners from entering into new deals, other experts said.
Some small spinners still need cotton to meet their seasonal demand, they observed. Some weeks ago, prices showed stable trend on shortage of quality cotton and fears of delay in arrivals of next production.
Reports of rains in country's cotton belt are playing positive development for cotton sowing as well as other Kharif crop, they said.
Reports showing that China's cotton inventory will plunge by 20 percent in the upcoming 2018/19 season to 6.01 million tonnes as farmers in one of the world's top producers cut acreage due to wage shortages and lower yields, the government said on Thursday.
Issuing its first forecasts for the 2018/19 season, the Ministry of Agriculture said it expects output to fall 6 percent to 5.55 million tonnes, while imports will come in at 1.2 million tonnes, up from 1.1 million tonnes. Plantings will fall by 4.9 percent to 3.19 million hectares, the ministry forecast.
In the international market, prices showed soft trend, dealers said.
The following deals were reported: 200 bales of cotton from Bhawalpur at Rs 7000 and 2000 bales from Burewala at Rs 6000, they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 09-05-2018
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37.324 kg 7,400 145 7,545 7,645 - 100/-
Equivalent
40 kgs 7,931 155 8,086 8,193 - 107/-
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