KARACHI: Expected bumper crop in most cotton-producing countries including Pakistan and Cotton market and higher phutti (seed cotton) supply pushed the prices further down while spinners and exporters rushed to build their stocks on falling prices.
Expected larger size of crop by most cotton-producing countries, including Pakistan, is keeping lint prices under pressure.
Floor brokers said that the cotton procurement operations by the Trading Corporation of Pakistan (TCP) have yet to show its impact on lint prices.
Meanwhile, the Pakistan Cotton Ginners Association (PCGA) has called an emergent meeting on Saturday (today) to draw a line of action against the government for withdrawal of 5 per cent sales tax on oilseed cake.
Many millers were seen active in the trading ring and lifted all offers made for sale at falling prices which generated some brisk activity.
The world cotton markets remained under pressure where lint prices moved lower on slow off-take. The New York cotton market closed easy for all the future contracts.
The Karachi Cotton Association (KCA), looking at the rapidly falling prices on ready deals, also cut its spot rate by Rs50 to Rs4,800 a maund.
The following major deals changed hands on ready counter: 600 bales Shahdadpur at Rs4,300, 1,000 bales Maroot at Rs4,900, 1,000 bales Haroonabad at Rs4,900, 1,000 bales Ahmedpur at Rs5,000, 1,000 bales Dera Ghazi Khan at Rs5,000 to Rs5,025, 3,000 bales Bahawalpur at Rs5,000 to Rs5,050, 2,500 bales Rahimyar Khan at Rs5,025 to Rs5,050, 2,000 bales Sadiqabad at Rs5,025 to Rs5,075, 1,000 bales Layyah at Rs5,025 to Rs5,050, 1,000 bales Shadan Lund at Rs5,050, 1000 bales Kot Addu at Rs5,050, 1,000 bales Tonsa Sharif at Rs5,050, 1,000 bales Isakhel at Rs5,100 and 1,000 bales Mianwali at Rs5,100.