KARACHI: After witnessing rising trend in cotton prices throughout the week owing to steep fall in the rupee value there were signs of correction on Sat­urday primarily triggered by slight improvement in rupee dollar-rupee parity.

The activity remained fairly brisk as leading spinners were in the forefront of buying spree.

The government’s decision to reduce gas tariff in Punjab and bring them on a par with other provinces is reported to be instrumental in this buying rush.Mea­nwhile, Chair­man Karachi Cotton Brokers’ Forum Nas­eem Usman said the decline in the rupee value will help increase exports but feared that usual buyers (importers) will ask for their share in the expected high profit margin from exporters.

The polyester fibre prices also moved higher with cotton prices, rising to Rs203/kg from Rs98/kg.

The world’s leading cotton markets gave mixed trend with New York, as in the last two days the market moved higher on fear of damage to standing cotton crop by hurricane which has attained higher warning level. But it was encouraging to note that the upward adjustment noted in the rupee for last two days helped to arrest the rising trend in cotton prices which hovered around Rs8,600 to Rs8,750 for high quality lint. The KCA left its spot rates unchanged at Rs8,500.

Trading on ready counter was fairly active: 1,000 bal­es, Shahdadpur, at Rs8,200 to Rs8,325; 1,600 bales, Nawabshah, at Rs8,400; 1,000 bales, Saleh Pat, at Rs8,650 to Rs8,700; 2,000 bales, Khairpur, at Rs8,565 to Rs8,700; 2,400 bales, Rahimyar Khan, at Rs8,700; 2,000 bales, Rajanpur, at Rs8,600 to Rs8,700; 1,000 bales, Sadiqabad, at Rs8,700; 1,400 bales, Fazil­pur, at Rs8,600; 1,000 bales, Mohammad Pur Dewan, at Rs8,600; 600 bales, Vehari, at Rs8,225 to Rs8,300 and 400 bales, from Chicha­watni, were done at Rs8,300.

Published in Dawn, October 14th, 2018