Pakistan cotton market witnessed upward prices journey

Cotton price in Pakistan market maintained upward journey on Wednesday, influenced with the recent international trend. Brokers said that deals were made at higher rates by up to Rs150 to Rs200 per maund as the world cotton markets moved higher influencing the domestic trading. Buyers rushed to replenish their stocks at higher level, cotton prices rose above the psychological barrier of Rs5,000 per maund because of rise in the dollar’s value against the rupee which has improved export parity of textile goods.

Sustained buying from spinners and exporters pushed lint prices higher on the cotton market. Floor brokers said that improved export parity following depreciation in the rupee’s value against the dollar induced buying from leading spinners. The underlying sentiment, however, was firm and buyers generally looked optimistic about the revival of the economy.

The official spot rate extended overnight gains picking up Rs 50 to Rs 4,950. In the ready session, over 20,000 bales of cotton changed hands between Rs 4650 and Rs 5275.

The seed cotton rate in Sindh at Rs 1800 and Rs 2350, in the Punjab prices were higher by Rs 200 to Rs 2200 and Rs 2600. Some leading exporters and mills played an active role in recent rise in the demand, cotton analyst, Naseem Usman said. Fall in fine quality stock, inducing buyers to make forward buying, rumours of cut in US cotton production in future, weakening rupee and recent rise in oil prices, played very important role in surge of local prices.

Other experts said that value-added sector is demanding not to impose 15 percent duty on import of Indian cotton yarn. They also said that to avoid any irregularity during the procurement process, TCP has principally decided to release all payments directly into the ginners and sellers’ accounts. India is expecting higher-than-expected 40 million bales of cotton during the current year.

The following deals were reported: 400 bales of cotton from Rohro at Rs 4750, same figure from Vehari at Rs 4650, 800 bales from Fort Abbas at Rs 4775-4885, 400 bales from Yazman Mandi at Rs 4835, same figure from Bahawalpur at Rs 4850, 1000 bales from Haroonabad at Rs 4900-5000, same number from Bahawalpur at Rs 5000, 1400 bales from Khanewal at the same rate, 400 bales from Kabbirwala at the same rate, 1485 bales from Mianwali at Rs 5000-5200, 400 bales from Lodhran at Rs 5100, 2000 bales from Jalalpur at the same rate, 1000 Liaquatpur at the same rate, 6000 bales from Rahim Yar Khan at Rs 5150-5200, 1600 bales from Dera Ghazi Khan at Rs 5200 and 1600 bales from Jahanian at Rs 5275.