Official spot rates of cotton were lowered for the third consecutive day yesterday and most deals on ready counter were also finalised at reduced rates.
Floor brokers said activity slowed down considerably as many growers and ginners are holding back their phutti (seed cotton) and lint stocks hoping price hike once the Trading Corporation of Pakistan (TCP) starts lifting cotton from ginners.
Though the TCP has so far entered into purchase contracts for more than 300,000 bales with ginners, they have yet to be finalised as presently sampling is being carried out.
Therefore, brokers said more time would be needed before the impact of the TCP cotton procurement operations starts to trickle down and support the falling cotton prices.
