Official spot rate dropped modestly on the cotton market on Thursday as most of the participants preferred to be sidelined as NY cotton futures slipped to lowest in 6-1/2 years, dealers said. The official spot rate was down by Rs 50 to Rs 5,250, dealers said. In Sindh and Punjab prices of seed cotton were at Rs 1600 and Rs 2800, they said. In the ready business, over 2000 bales of cotton changed hands between Rs 4850 and Rs 5100, they said.
According to the market sources attendance was thin owing to depressed demand for cotton yarn and fabric in the world market and domestic market. In the meantime, many spinners having comfortable financial position are importing cotton to see the current season through, they said. Reliable circles said that 25 percent duty required to off-set the dumping of yarns and fabrics immediately, which may help cotton traders to get rid off present crisis.
Besides, the All Pakistan Textile Mills Association (APTMA) said that it is not interested in removing 10 percent Regulatory Duty on the import of Fine Counts of Cotton Yarn from India. Cotton analyst, Naseem Usman said that to come out of worse condition of cotton trade, all stake-holders will arrange meetings in many parts of country. The government has no reasons for damages of cotton crop, it has no clear picture, how it can make estimate for the next year, it’s a kind of surprising joke.
Reuters adds: Cotton futures slipped for a fourth straight session on Wednesday, plummeting to the lowest in 6-1/2 years, as weak demand and a slump in stock markets continued to weigh on the natural fibre. Cotton contracts for May settled down 0.59 cent, or 1.02 percent, at 57.41 cents per lb, the lowest price since August 2009, after hitting 57.26 cents, a contract low. The following deals reported: 600 bales of cotton from Shahdadpur sold at Rs 4850 and 1600 bales from Khipro at Rs 5100, dealers said.