Cotton rates steady
KARACHI: Cotton prices remained steady on Thursday amid slow trading as ginners avoided deals in the hope of getting higher prices in future. However, buyers remained focused on quality cotton.
Market sources said the traders are facing a liquidity crunch as banks near the year-end closing. Moreover, the non-payment of sales tax refunds by the Federal Board of Revenue (FBR) to the export sector for last five months has further hampered the traders’ liquidity.
The government’s promises to pay refunds within the 72 hours on submission of claims under the FBR’s new scheme named FASTER are yet to be fulfilled, brokers lamented.
As a result, the market activity was dismal with buyers striving hard to get hold of quality cotton as ginners avoided selling at current prices hoping they would bounce back, the sources added.
On the global front, the Indian cotton remained under pressure for second consecutive session by closing Rs100 lower per candy (356kg), in addition to Rs700 lost a day earlier.
The Chinese and New York cotton were mixed to steady as US-China trade negotiations keep sentiment subdued.
The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs8,750 per maund.
The following deals were reported to have changed hands on ready counter: 400 bales, station Ghotki, at Rs8,900; 400 bales, Mirpur Mathelo, at Rs9,000; 1,600 bales, Khairpur, at Rs8,000 to Rs8,200; 600 bales, Tando Adam, at Rs8,200; 800 bales, Rahimyar Khan, at Rs8,900; 600 bales, Khanpur, at Rs8,850 to Rs8,900 and 2,000 bales, Donga Bonga, at Rs8,050 to Rs8,100.