KARACHI, June 5: Prices showed no respite in declining trend on the cotton market on Tuesday as demand remained depressed amid higher inventories and global production glut of lint. Shrinking buying power in some of the European Union countries coupled with fears of falling back into recession is having adverse impact on world textile trade.
The New York cotton future contracts tumbled by over 30-cent per lb during the last one month.
The cotton sowing is in full swing despite reports of shortage of irrigation water in some areas of Sindh and Punjab, but still this is not having any impact on prices owing to depressed world market conditions, dealers said.
The Karachi Cotton Association kept the spot rates unchanged at the overnight levels.
However physical trading was slow as following deals changed hands on the ready counter on Tuesday evening below the spot rates: 200 bales, Vehari at Rs5,300, 300 bales Arifwala at Rs5,300 and 100 bales, Mailsi at Rs5,600.