Cotton Prices May Remain Subdued

Cotton prices in India and Pakistan are likely to remain subdued next week because of slack demand from mills, dealers said yesterday.

In Pakistan, rates closed steady in lacklustre trading on Wednesday before the market began a four-day break for the Eid al-Adha festival.

Nasim Usman, a broker at Karachi Cotton Association (KCA), said prices were likely to open unchanged on Monday on slow mill demand. He added that unsold stocks at ginneries of more than a million 375-lb bales was overhanging the market.

In the kerb market, NIAB-78 variety was quoted at 2,100/2,225 rupees per maund (37.32 kg), K-68 at 2,450/2,475 and MNH-93 at 2,460/2,485. In India, cotton prices fell this week on sluggish mill demand and improved supply after transport operators ended their strike on April 10, traders said.