Renewed buying interest at the lower level from exporters and some millers on Tuesday generated activity on the cotton market where underlying sentiment also indicated firmer tone.
Floor brokers said that lesser arrivals of Indian cotton yarn in the local market due to appreciation in Indian rupee value generated some buying interest from needy mills and exporters.
Similarly, the rise in Indian currency’s value also reduced exports of cotton yarn to Chinese market as export parity becomes somewhat uncompetitive for Indian exporters.
According to brokers, all these factors are developing in favour of Pakistani spinners who had been recently under pressure due to dumping of Indian cotton yarn in domestic market and in Chinese market.
Meanwhile, the unsold stocks of cotton held by ginners are also rapidly falling and market sources believe that presently around 700,000 bales are available in the country and may completely exhaust by end of next month.
The New York cotton market opened the week on easy note where all the future contracts ended with fresh falls.
The Karachi Cotton Association (KCA) spot rates were firm at previous level.
Trading on ready counter picked up slightly, and the following deals were reported to have changed hands: 480 bales, Yazman Mandi, at Rs6,435; 2000 bales, Rahimyar Khan, at Rs6,500; 400 bales, Shahir Sultan, at Rs6,600; and 1,000 bales, Sadiquabad, at Rs6,600.
Source:- dawn.com
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