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KARACHI (May 06 2010): Lacklustre condition was seen on the cotton market on Wednesday as mills were sidelined on anticipation that the prices may come down in the coming days, dealers said. The Karachi Cotton Association (KCA) official spot was unchanged at Rs 6700, they said.
In the ready business only a deal of 200 bales of cotton from Khanpur was done at Rs 6700. The Phutti prices in both the Punjab and Sindh were at Rs 2500-2600, they added. According to the market sources growers are still worried about the developing situation on the textile front as they are already under pressure and the government mat impose ban on exports of cotton yarn.
On the other hand, the mills were hoping that the exporters' entry to sell the surplus cotton may ease prices, but it is before time to predict about the next direction of market in the absence of fresh lead, they said. Some analysts said that several meetings of the textile stakeholder failed to produce any positive result, which may cause fall in the foreign exchange earnings.
On Tuesday the NY cotton futures ended at a two-week low on investor liquidation and brokers said the poor technical picture for fibre contracts could further punish values in the coming sessions. The benchmark July cotton contract dropped 1.94 cents or by 2.33 percent to finish at 81.29 cents per lb, trading from 81.19 to 83.51 cents. Based on the second position daily charts, it was the lowest close for cotton since April 19. Volume traded in the July contract stood at a hefty 16,515 lots as of 2:32 pm EDT (1732 GMT). New-crop December lost 0.81 cent to end at 77.08 cents, ranging from 76.75 to 78 cents.
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