July 15, 2018

Cotton market Political uproar may disrupt upward journey.

Political uproar ahead of general election 2018 in the country, likely to discontinue persistent increase in cotton rates, dealers said

on tthe local market on Saturday. The official spot rate just after a short break, picked up Rs 200 to Rs 8600, they added. Prices of seed cotton in Sindh were at Rs 4000-4200 in the Punjab, rates were at Rs 3800-4400, they said. In ready session, around 5000 bales of cotton finalised between Rs 8750-Rs 8800, they said.

 

Market sources said that it is before time to predict about the future direction of the market but it seems that prices may not maintain upward trend during the pre-election 2018 sessions. Sharing the same views, cotton analyst, Naseem Usman said that the mills and spinners, who have some old stock, are on the save side, not trying to purchase cotton at present levels, just adopting a wait-and-see attitude.

 

In fact, the demand and supply imbalance has pushed rates up these days, whereas, the mills and spinners, who enough stock, were on the sidelines, expecting for decline in the rates in the coming days, marketmen said. They also said that 5 percent Sales Tax imposed on import of cotton, so, the needy mills may continue forward buying in the coming days. Since the cotton sowing started in the country, the said crop is facing a lot of problems due to heat waves and short flows of irrigation water, they said.

 

Earlier, it was assumed that the country to achieve desired cotton production target but under the circumstances, now it seems a little bit difficult, they observed. Reuters adds: ICE cotton futures were down on Friday. In the meantime, Indian cotton prices rose moderately in process of trading, dealers said.

 

Following deals reported: nearly 1400 bales of cotton from Shahdadpur done at Rs 8750-8800, 2000 bales from Tando Adam at Rs 8800, 1000 bales from Sanghar, 200 bales from Hyderabad, 400 bales from Kotri and 200 bales from Chichawatni all done at the same level, they added.