Prices of cotton came down on the cotton market on Wednesday due to quality factor, dealers said. The official spot rate was lower by Rs 50 to Rs 5600, they said. In the Punjab, seed-cotton prices were at Rs 3100 and Rs 3200, they said. In ready session, only 3000 bales of cotton changed hands between Rs 3700 and Rs 5175, they said.
According to the market sources, mills changed the idea of purchasing cotton from the ginners due to higher rates. The mills and spinners started buying of cotton from the Trading Corporation of Pakistan (TCP). Commenting on the latest development in the market, cotton analyst, Naseem Usman said that mills bought approximately 4100 bales of cotton from the TCP at Rs 5860.
But he said that this factor cannot help in bring down the rates in the market as the ginners have little stock of fine lint. The following deals finalised: 600 bales of cotton from Hala at Rs 3700, 200 bales from Tando Adam at Rs 4500, 200 bales from Shahdadpur at Rs 4700, 200 bales from Moro at Rs 5085, 1000 bales from Noaabad at Rs 5100, 400 bales from Kotlalo at Rs 5100 and 400 bales from Shaher Sultan at Rs 5175.