Slow trading activity continued on cotton market

Slow trading activity continued on the cotton market on Tuesday amid dwindling stocks and lower exports of cotton yarn. The Karachi Cotton Association kept its spot rates unchanged at Rs6,800/maund (37.324kg) and Rs7,288/40kg.

Ex-Karachi rates also stood firm at Rs6,935/maund and Rs7,433/40kg after an addition of Rs135 and Rs145 as upcountry expenses, respectively.

According to an analyst, cotton stocks were almost over in the country, while there were preparations of the new crop. Sowing has started in parts of lower Sindh in Badin and some areas of Thatta, while it will begin on April 15 in Punjab.

Late sowing in Punjab is being started on the instructions of the government, as it will save the crop from pest attack.

Major deals that changed hands on the ready counter were: 1,000 bales from Rahimyar Khan at Rs6,800 per maund (around 37 kilgrams) and 1,000 bales also from the same city at Rs7,000.

On global front, China continues to export cotton and may open the new season with zero holdings. Moreover, it was difficult for the analysts to comment on the Indian cotton situation as the country is importing cotton on the one hand and exporting it on the other.

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