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KARACHI (May 22 2010): Not a single deal was reported on the cotton market on Friday as the mills adopted wait-and-see mode to observe the prevailing situation, dealers said. The Karachi Cotton Association (KCA) official spot rate was left unchanged at Rs 6450. In the ready business, no change was seen in present outlook, they said.
According to the market sources it is expected that the trading activity may resume from the next week as the All Pakistan Textile Mills Association (APTMA) after the meeting with the textile minister has ended the strike following his advice. Textile Minister Rana Farooq Saeed Khan urged the APTMA to resolve the present issue in an amicable manner with all other sectors so that a culture of co-existence may prevail in the industry so that everyone may achieve due benefits.
The cotton traders are still double minded as some of them said that yarn crisis deepened as 70 per cent of spinning mills are gradually closing down in the near future as their local cotton stocks are diminishing. In the meantime, the encouraging news is that the new cotton crop is in good condition as a result of favourable weather and partly because of availability of irrigation water on time, analysts said.
On Thursday the NY cotton futures closed lower as selling pressure from outside markets and expectations China would release some cotton from its state reserves prompted investors to take profits, analysts said. The key July cotton contract slipped 1.19 cents to end at 82.09 cents per lb, trading from 81.45 to 83.40 cents. Volume traded in the July contract stood at 9,887 lots at 2:29 pm EDT (1829 GMT). New-crop December cotton futures ended 1.16 cent lower at 76.95 cents, ranging from 76.38 to 78.15 cents.
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