Cotton prices move lower
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KARACHI: The downward trend in cotton prices continued on Saturday, with buyers preferring to stay on the sidelines. Overall, the undertone was easy and outlook uncertain.
The rupee-dollar fluctuation put cotton prices under pressure. The market was caught by surprise when Saudi Arabia okayed financial assistance to the tune of $6 billion to Pakistan. This helped the rupee stabilise against the dollar and pushed cotton prices lower in the range of Rs300-400 per maund as buyers took advantage.
As a result of this sudden turnaround cotton prices — which reached a high level at Rs9,100 per maund — came down for all varieties. Sindh cotton moved lower to Rs8,800-8200 per maund and phutti declined to Rs4,000-3,600 per 40kg. Punjab cotton came down to Rs8,800-8,400 and phutti was sold between Rs3,500-4,000 per 40kg. Balochistan cotton ranged between Rs8,500-8,600 per maund and phutti between Rs3,600-4,200 per 40kg.
The Karachi Cotton Brokers’ Forum chairman Naseem Usman said the currency market is consolidating with the hope of Chinese financial assistance. Given this background, there would be no further rise in cotton price in future, he added.
He further said that some 4 million cotton bales would be imported this season due to short crop.
The Karachi Cotton Association spot rates were further lowered by Rs100 to Rs8,550 per maund.
The following deals were reported to have transpired on ready counter: 1,600 bales, Khairpur, at Rs8,500-8,575; 1,000 bales, Rohri, at Rs8,600-8,650; 1,200 bales, Fazilpur, at Rs8,700-8,750; 1,200 bales, Rahim Yar Khan, at Rs8,750; 1,200 bales, Sadiqabad, at Rs8,700-8,750; 2,600 bales, Rajanpur, at Rs8,500-8,750; 1,200 bales, Bahawalpur, at Rs8,650-8,700; 800 bales, Ahmedpur East, at Rs8,600-8,700; 1,800 bales, Mirpur Dewan, at Rs8,500, 800 bales; Marrot, at Rs8,575-8,650 and 600 bales, Jalalpur, at Rs8,550-8,650.
Published in Dawn, October 28th, 2018
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