Cotton spot rate remains flat

Karachi

Cotton prices slightly rose on Monday due to sluggish buying from the spinners, brokers said. The Karachi Cotton Association (KCA) reported that traders bought at least 5,700 cotton bales over the ready counter at Rs5,420 to Rs5,700 per maund as against at Rs4,800/Rs5,650 per maund during last trading session.

The KCA also kept official spot rate unchanged at Rs5,400 per maund. 

Brokers said that trade volumes remained thin owing to the selective buying from the spinning mills.   “The mills bought high quality lint to meet their immediate demands,” said a broker at KCA. 

“The spinners were building up their stocks amid falling lint prices last week. This trend, however, seems to end, showing weak demand for cotton yarn from the spinning mills,” he added. 

Cotton output is expected to remain dismal during the current season due to lack of quality agri inputs, especially certified cotton seed.