Pakistan: Cotton spot rate declines

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Karachi

The Karachi Cotton Association (KCA) revised down its official spot rate by Rs50 per maund (37.324 kilograms) to Rs5,400 per maund after demand for the commodity remained low at the local markets, a dealer said on Wednesday.

“Traders are buying a few hundred bales on cash these days…trade turnover remains low during off-season {April-June},” a broker at the Karachi Cotton Exchange said.

Traders bought a total of 2,800 bales (155 kilograms each) at Rs4,100 to Rs5,675 per maund as compared to 5,800 bales bought at Rs4,625 to Rs5,750 per maund a day ago.

The broker said most of the deals being made at or above Rs5,500 was on credit. “Most of trade deals are on credit these days,” he said.

He said trade activities may remain low till matured crop of the new season arrive late in July. “A few thousand bales may arrive in the second half of June from lower Sindh,” he said.

At the New York cotton market, price of July futures contract decreased by 0.15 cents per pound to 63.60 cents per pound.

– thenews.com.pk

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