MULTAN: Trading on the cotton market slowed down on Tuesday as buyers and sellers adopted wait-and-see approach.
Brokers said that due to the decrease in futures prices in New York and Chinese cotton markets, buyers who did panic buying on Monday remained reluctant to enter into major deals.
Ginners are also not ready to reduce the prices and even those who have stocks of old crop did not come forward as they believe that prices would increase in the coming days due to less cotton sowing area this year.
Brokers said that prices could further increase with the improvement in the arrivals of new crop. Spinning mill owners of India and Bangladesh are keeping an eye on the Pakistani market and start the buying any time, they added.
They said that ultimately the Pakistani spinning mill owners would also enter into big deals as they would not leave the market open for exporters.
Arrivals in Punjab are also on the rise and it would catch momentum after Eidul Fitr.
Deals of about 2,400 maunds of phutti (seed cotton) were made across the country — 1,900 maunds in Sindh and 500 maunds in Punjab.
Phutti prices in Sahiwal were Rs3,350, Chichawatni Rs3,100, Arifwala Rs3,050, Chishtian Rs3,100, Thatta Rs3,200, Badin Rs3,250, Degree Rs3,225, Jhadu Rs3,300, Sanghar Rs3,300, Kunri Rs3,175 and Tando Allah Yar Rs3,100.
The Karachi Cotton Association (KCA) kept its spot rates unchanged at Rs5,500. Major deals on the ready counter were: 200 bales from Shahdadpur at Rs5,900, 200 bales Sanghar at Rs5,875 and 400 bales Tando Adam at Rs5,925.
Deals of old crop included: 2,500 bales (quality lint) from Khanpur at Rs6,100, 400 bales Liaquatpur at Rs5,450, and 200 bales Dera Ghazi Khan at Rs5,650, while another conditional deal of 200 bales took place in Khanpur at Rs5,600.