KARACHI: Trade turnover of cotton declined to 6,400 bales in the open markets on Monday after spinning mill owners denied to pay higher prices for the commodity, a dealer said.
“Trade turnover of cotton declined after spinning mill owners denied paying higher prices for the commodity,” a broker at the Karachi Cotton Exchange (KCE), said. “Earlier, prices shot upto Rs7,300 per maund on cash.”
The refusal of mill owners to pay higher prices again led to the decline in the commodity’s demand and price this session, he said.
Traders exchanged a total of 6,400 bales in the session at Rs6,000 to Rs6,800 per maund (37.324 kilograms), reported KCE. In the previous session on Saturday, they exchanged 15,000 bales at Rs6,150 to Rs7,250 per maund, it added.
KCE kept its cotton spot rate unchanged at Rs6,750 per maund for the second consecutive working day.
Sadiqabad witnessed the highest trade of 4,000 bales at Rs6,800 per maund, Shahdadpur traded 1,200 bales at Rs6,00 to Rs6,200 per maund and Sanghar and Mir Pur Khas traded 600 bales each at Rs6,000 to Rs6,800 per maund, said KCE.
The broker said that the decline in turnover and price was a temporary phenomenon and it cannot be prolonged. “Buyers have to pay a price that ginners are demanding as the supply of the commodity was less in the market than the demand these days,” he said.
In its previous fortnightly report, Pakistan Cotton Ginners’ Association reported a decline of 1.60 million bales to 12.76 million bales’ production in the first seven months of ongoing fiscal year against 14.37 million bales produced in the same period last year.