KARACHI: The price of cotton fell slightly in Pakistan, while the commodity’s trade turnover remained low as majority of spinning mill-owners have stopped fresh buying along with maintaining enough stocks to run mills in the outgoing cotton season, a dealer said on Friday.
“Continuous low turnover of cotton convinced ginners to lower their prices for the commodity in Pakistan,” Naseem Usman, broker at Karachi Cotton Exchange (KCE), said, “Majority of spinning mill-owners have stopped buying after they successfully built positions to run their factories in the outgoing season.”
Besides, international cotton markets also witnessed decline in prices and slowdown in trade, he said.
The maximum price of cotton fell to Rs7,000 per maund (37.324 kilogram) from Rs7,200 per maund a day earlier.
The same quality cotton was being sold at upto Rs7,500 per maund on credit against Rs7,700 per maund a few days back, he said.
Traders in Pakistan exchanged a total 4,000 bales (of 155 kilogram each) at Rs6,100 to Rs7,300 per maund (37.324 kilogram).
A day ago, they had traded 4,500 bales at Rs5,900 to Rs7,500 per maund.
At the New York cotton market, the May futures contract dropped by 0.07 cents per pound to 88.46 pound, while July futures contract up by 0.01 cent per pound to 89.81 cents, KCE reported.
About 10 days ago, the New York market was trading cotton above 92 cents per pound.
The Karachi Cotton Exchange maintained its cotton spot rate unchanged for the eighth consecutive day at Rs6,900 per maund.
Therefore, Burewala traded 1,000 bales at Rs6,700 per maund, followed by M. Pur Dewan, which traded 900 bales at Rs7,300 per maund on credit, KCE said.
Chichawatni traded 700 bales at Rs6,100 to Rs6,400 per maund, Haroonabad, Kot Sabzal and Sadiqabad traded 400 bales each at Rs6,850 to Rs7,000 per maund and Multan traded 200 bales at Rs6,450 per maund, it added.