Trade turnover of cotton fell to three-week low of 3,000 bales (155 kilograms) due to scheduled closure of banks across the country on Wednesday, a dealer said. “The closure of banks on account of the year-end book closing caused plunge in trade activities,” Taqi Abbas, a broker at the Karachi Cotton Exchange, said.
He said that the banks’ closure resulted in unavailability of financing for trade amid modest trade turnover.
The situation forced a trader to acquire cotton on credit at a much higher rate. “A trader bought 1,000 bales of cotton at Rs7,500 per maund on credit in Bahawalpur,” the Karachi Cotton Association (KCA) reported.
In total, traders exchanged mere 3,000 bales at Rs6,350 to Rs7,300 per maund as compared to 6,200 bales traded at Rs6,350 to Rs7,300 per maund a day ago, the Karachi Cotton Association reported.
Meanwhile, the KCA kept its cotton spot (average) rate unchanged for the second working day at Rs6,950 per maund.