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Related Keywords: absence of buying interest, came under pressure and moved lowered, decline in cotton prices, falling cotton prices, Ginners, KCA, local spinners, phutti (seed cotton), spot rate

The absence of buying interest from local spinners witnessed further decline in cotton prices on Thursday. Due to falling cotton prices, phutti (seed cotton) also came under pressure and moved lowered.

Ginners are perturbed by the situation as they are still holding substantial quantity of unsold cotton. Barring a few needy spinners who replenished their stocks, the market otherwise remained devoid of activity.

A large number of looms are reported to have shutdown in Faisalabad owing to the flooding of grey cloth coming from India and China via Dubai.

Related Keywords: after dull trading activity cotton market, cotton bales, cotton prices, falling cotton prices, impacted phutti negatively, KCA, KCE, moving further lower on Tuesday, Punjab quality, Sindh variety, Spinners, spot rate, Textile spinning sector

Cotton prices moving further lower on Tuesday after dull trading activity at cotton market. Falling cotton prices also impacted phutti (seed cotton) negatively, with Punjab quality being quoted between Rs2,700-2,900 and Sindh variety in the range of Rs2,700-3,300 per 40kg. Previously phutti prices were being quoted between Rs2,900-3,500 per 40kg.

However, some buying interest was noted at the lower level as many spinners preferred to cover up their positions amid falling cotton prices.

Related Keywords: buyer and sellers remained confused, Fall in US dollar value against the rupee, falling cotton prices, ginners disposed stocks, import parity of cotton improved, Karachi Cotton Association, mixed price trend, needy spinners seen buying, New York cotton market, rapid change in market behaviour, replenish stock, seed cotton, spot rate

Some needy spinners were seen buying at cotton market due to falling cotton prices on Tuesday to replenish their stocks. Due to short crop, cotton prices should have soared and activity should have been brisk, brokers said. However, the situation continued to be uncertain as buyers and sellers remained confused over the rapid changes in the market behaviour.

Fall in US dollar’s value against the rupee forced many ginners to dispose of their stocks in a hurry because import parity of cotton improved.

Related Keywords: Cotton Association of India, Cotton Ginners, Cotton ginning industry, cotton seed, face tough time, falling cotton prices, low export demand, major buyers like China, raw cotton, realization from processed cotton, Saurashtra Ginners Association, shrinking profit margin

Cotton ginners are in a fix as export demand is less as major buyers like China have not turned up this time. This is hurting realization from processed cotton, thereby reducing profit margins for ginners, said Arvind Patel, Vice-President of Saurashtra Ginners’ Association (SGA), one of the largest clusters of the cotton ginning industry in the country.