Commodities: Ginners reluctant to oblige buyers

MULTAN: Slow trading was visible on the cotton market on Saturday as sellers were reluctant to enter in deals at the prevailing prices. The Karachi Cotton Association kept its spot rate unchanged at Rs9,000.

“Ginners have unsold stocks of 0.8 million bales while it is being estimated that an additional 0.2m bales will be added from the remaining crop. This indicates that country’s total production would not be more than 8.5m bales,” cotton expert Usman Naseem said.

“According to the All Pakistan Textile Mills Association, mills have to import 6m bales and about $2 billion will be spent on this,” he added.

Meanwhile, cotton expert Mudabbir Shah said that despite all adverse reports from international market and prevailing situation in connection with coronavirus in China, ginners in Pakistan are hopeful that lint prices will not fall. “They are of the view that when unsold stocks are not much, how could the prices be reduced,” he said.

He said millers have no other option but to purchase cotton from local market as internationally rates are much higher.

Phutti (seed cotton) prices in both Sindh and Punjab remained between Rs3,200-4,850.

The following deals were reported to have changed hands on ready counter: 800 bales, station Rahim Yar Khan, at Rs9,300 and Rs9,200 (440 bales each); 200 bales, Sadiqabad, at Rs9,250; 200 bales, Liaquatpur at Rs8,900; 200 bales, Mian Channu, at Rs8,200; 400 bales, Haroonabad, at Rs8,500; 200 bales, Yazman, at Rs8,525; and 200 bales, Lodhran, at Rs8,350.

Published in Dawn, February 2nd, 2020

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