KARACHI: Trade turnover of cotton remained low in the country after India and China have temporarily stopped buying from global markets, a dealer said.
“Pakistani markets see little trade in cotton after India and China have stopped buying from world markets,” Naseem Usman, a broker at Karachi Cotton Exchange (KCE), said. “Governmental departments of the two countries are releasing the commodity to their domestic buyers from their holdover stocks.”
The situation has impacted cotton markets across the world, he said, adding that the impact of the situation was limited in Pakistan’s context. “The situation lowered the trade turnover of cotton, but has no impact on the commodity’s price in the country,” he said.
He said that the commodity’s price remained stable in Pakistan since stocks of fine quality cotton were depleting and are believed to be meagre with the cotton harvesting season about to be over now for the current fiscal year.
Traders exchanged a total of 3,500 bales (of 155 kilogram each) at Rs5,100 to Rs7,200 per maund (37.324 kilogram). On the previous working day on Friday, they had traded 8,456 bales at Rs6,500 to Rs7,700 per maund, KCE reported.
The broker said that fine quality cotton was still trading at a price upto Rs7,300 per maund on cash and Rs7,700 on credit.
The KCE maintained its cotton spot rate unchanged for the fourth consecutive day at Rs6,900 per maund. Rahim Yar Khan witnessed the highest trade of 1,000 bales at Rs7,200 per maund on credit, followed by Mian Wali, which traded 800 bales at Rs6,800 to Rs6,950 per maund, KCE said.
Hasil Pur traded 700 bales at Rs6,375,per maund, Mian Channo and Layyah traded 400 bales each at Rs5,100 to Rs6,800 per maund and Yazman Mandi and Rajan Pur traded 100 bales each at Rs6,700 per maund, it said.The broker said that the market may continue to see sluggish trading till big buyers of cotton, ie, India and Chain, restart buying from world markets.