Volume of business shrunk on the cotton market on Monday due to fall in demand by mills and spinners, dealers said. The official spot rate was unchanged at Rs 7,000, they added.
Prices of seed cotton in Sindh per 40 kg were unchanged at Rs 2500 and Rs 2800, in Punjab, prices were inert at Rs 2500-3200, dealers said. In the ready session, around 400 bales of cotton changed hands at Rs 7000, dealers said.
Market sources said that mills, spinners and exporters were on the sidelines owing to lack of buying interest. Cotton analyst, Naseem Usman said that yarn rates were coming down day by day because of less interest among buyers. Economic crisis the world over is causing a sharp decline in the rates of cotton, except, the Bangladeshi textile products, which gained momentum despite political uncertainty there, he said.
Reuters adds: Chinese farmers are likely to reduce cotton acreage by 10.7 percent in 2014, cutting back for a third year in a row as they seek better returns from other crops, according to a survey by an influential think-tank issued on Monday. The expected 2014 decrease outpaced last year's decline and follows Beijing's decision to end its stockpile scheme, said the China Cotton Institute. The decline was also bigger than an earlier industry poll, which forecast a 9 percent cut. The following deals reported as 200 bales from Faqir Wali at Rs 6950 and same figure from Karror Pakka at the equal amount, they added.
Source:- brecorder.com
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