Subdued business was again witnessed on the cotton market on Tuesday as mills still on the sidelines in the absence of motivating factors, dealers said. The official spot rate dropped Rs 50 to Rs 8,850, they added. Prices of seed cotton in Sindh were at Rs 3000-4100, in the Punjab seed cotton prices were at Rs 3600-4100 and in Balochistan, rates of seed cotton were at Rs 3600-4400, they said.
In the ready session, about 13,000 bales o
tton changed hands between Rs 8000-9050, they said.
Some brokers said that mills and spinners were on the sidelines in the absence of guiding factors.
Cotton analyst, Naseem Usman said that except India, prices continued to decline due to less buying interest.
He also said that dollar's slight gain helped the cotton rates to stabilise. Furthermore, the market is keenly waiting for the outcome of the discussion of the International Monetary Fund (IMF) and government bail-out package, other experts said.
Besides, India has paid out far more in cotton subsidies than the World Trade Organization allows, with payments "vastly in excess" of what it had officially declared, the United States said in a filing to the trade watchdog on Monday.
The US assessment of India's market price support (MPS) for cotton said New Delhi was allowed to pay out up to 10 percent of the value of production, but according to reports, rates of cotton were higher in India due to fall in total production and prices showed patterns in other parts of the world, they said.
The following deals reported: 400 bales of cotton from Tando Adam at Rs 8000/8200, 800 bales from Nawabshah at Rs 8400, 400 bales from Moro at Rs 8550/8575, 200 bales from Sakrand at Rs 8400, 1000 bales from Khairpur at Rs 8600, 1000 bales from Rohri at Rs 8700/8800, 800 bales from Saleh Pat at Rs 8700/8800, 800 bales from Ghotki at Rs 9000/9050, 2800 bales from Sadiqabad at Rs 9000/9050, 800 bales from Ahmedpur East at Rs 8750/8800, 1400 bales from Fort Abbas at Rs 8700/8825, 800 bales from Haroonabad at Rs 8575/8700, 1000 bales from Yazman Mandi at Rs 8675/8700 and 400 bales from Mianwali at Rs 8650, they said.