Karachi—A downward trend was witnessed on the cotton market as phutti arrivals increased at the ginneries, dealers said. The Karachi Cotton Association (KCA) official spot rate was lowered by Rs 100 to Rs 6,300, they said. Prices of seedcotton in Sindh were down by Rs 100 to Rs 2200-2700 and rates in Punjab were at Rs 2000-2900, they said.
In ready dealings about 7,000 bales of cotton changed hands between Rs 5,600-6,500, they said. Commenting on the latest developments, some analysts said rising trend in the phutti arrivals propelled the growers and ginners to lower the asking prices and in fact, fresh slacken interest in buying by the mills to cut down prices.
The ginners were not cutting down prices of fine quality as the mills were interested in low quality of cotton, they said. The buying of fine quality will start from the next month, they added. On Friday the NY cotton futures ended lower on investor sales due to fears of an economic slowdown in top consumer China, as the market ended the third quarter of 2011 with sizeable losses as recession worries hit the market.
The key December cotton contract on ICE Futures US fell 2.03 cents to end at $1.0019 per lb, trading from 99.55 cents to $1.03. The market has been pinned in a rough range from 99 cents to $1.0317 over the past five sessions. Cotton is the seventh worst performing commodity on the Reuters Jefferies commodity index.
The market is down 15.7 percent on the quarter. It fell 5.3 percent on the month and is down 1.4 percent on the week. Total volume traded on Friday hit almost 13,900 lots, around 12 percent over the 30-day norm, preliminary Thomson Reuters data showed. Independent cotton analyst Mike Stevens in Mandeville, Louisiana, said news that China’s manufacturing sector contracted for a third consecutive month deflated the positive sentiment from Thursday’s close.—Agencies