Pakistan: Cotton market witnesses dull trading

KARACHI: Trading at the domestic cotton market lost momentum on Monday due to enough stocks of cotton yarn in the country, dealers said.
“A couple of deals of raw cotton were made as main buyers remained on the sidelines as a lot of cotton yarn is stuck up in the country’s factories,” said Naseem Usman, Chairman of the Karachi Cotton Brokers Forum.
“The demand for the commodity has sharply fallen on account of slow buying from Chinese merchants who are unwilling to strike any deals with their counterparts in Pakistan and India. They are busy snapping up their own ginned cotton and cotton yarn.”
Spot rates at the Karachi Cotton Association (KCA) remained stable at Rs9,500 per maund and Rs10,181 per 40kg for average-quality lint. Seedcotton (Phutti) remained steady in the range of Rs2,500 and Rs3,000 per 40kg, depending upon the quality grade in the country.
The country’s cotton sales fell to 420 bales of raw cotton (170kg each), including 200 bales from Shah Pur Chakar; 100 bales from Shujabad and another 120 bales from Tando Adam at prices, varying in between Rs7,800 and Rs8,000 per 40kg.

(Source: http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=44744&Cat=3&dt=5/3/2011)