Cotton prices steady amid lack of buyingArchive
KARACHI: The cotton market remained steady on Saturday as there was little buying interest from spinners who generally preferred to stay on the sidelines.
Barring a few lots originating from some needy spinners, the market lacked buying interest as there was no selling pressure from ginners, brokers said.
It seems that the textile industry is waiting to see the impact of lower crude oil prices on primary commodities and only then enter into big deals.
The textile industry is worried about the prices they would get against their exports in the world market. A steep fall in earnings of foreign exchange through exports during the first six months of this fiscal year is a strong indicator that prices of primary goods have already declined on the world market.
Spinners are not getting good prices for cotton yarn as it has been replaced by polyester fibre yarn, which has turned cheaper after the fall in crude oil prices, they added.
The New York cotton market moved higher for second straight session where all the future contracts closed with fresh gains.
The Karachi Cotton Association (KCA) spot rates were firm at previous level.
The following deals were finalised on ready counter: 1,000 bales from Rohri (Rs5,400 to Rs5,500 per bale), 400 bales from Yazman Mandi (Rs5,425), 1,000 bales from Rahimhyar Khan (Rs5,600), and 2,600 bales from Alipur (Rs5,750).
Published in Dawn, January 24th, 2016