Pakistan’s cotton markets witnessed no trading during the last 24 hours, as traders stopped buying on the hope for a further decline in commodity’s prices in a day or two, a dealer said on Wednesday.
“Traders halted buying in cotton on the expectation for a further decline in the commodity prices,” Shakeel Ahmed, a broker at the Karachi Cotton Exchange (KCE), said.
The traders’ hopes may come true. But more importantly, local markets were running in line with the New York cotton market. Therefore, trends at the international market will shape trading scenario at the local markets, as well, he said.
“Cotton prices had shot up to Rs7,000 to Rs7,500 per maund (37.324 kilograms) at the local markets when New York market was trading at 93 cents per pound in the recent past. Similarly, decline in New York cotton prices to 85-86 cents per pound, at present, has also brought the commodity prices down to around Rs6,500 per maund at the local markets,” he said.
The cotton demand has declined across the world since China, the world’s biggest buyer, announced to sell the commodity to its local buyers from its strategic reserves.