July 17, 2018

Cotton prices rise on sharp devaluation of rupee.

Cotton prices went up on the local market on Monday amid announcement of first ever biggest devaluation of the rupee against the dollar, dealers said.

 

The official spot rate was unchanged at Rs 8600, they added. Prices of seed cotton in Sindh were at Rs 4000-4200 while in the Punjab, rates of phutti were at Rs 3800-4300, they said. In ready session, around 9000 bales of cotton finalised between Rs 8700-Rs 9000, they said.

 

According to the market sources, trading activity gained momentum as mills and spinners indulged in fresh buying to meet their requirements. Cotton analyst, Naseem Usman said that imposition of new taxes making imports further expensive, these negative factors would help in increasing the cost of doing business costlier in the coming days. He said that withdrawal of customs duty exempted on cotton import was not an encouraging factor for the textile sector. He also said that polyester fibre price was higher by Rs 180 per kg.

 

Whereas the growers were happy in expectations of increase in the profits, other brokers said. In Indian market, cotton prices were down in the process of business, they said.

 

Following deals reported: 3000 bales of cotton from Tando Adam at Rs 8700/8800, 1800 bales from Shahdadpur at Rs 8700-8800, 1200 bales from Sanghar at Rs 8750/8800, 200 bales from Noabad at Rs 8800, 200 bales from Burewala at Rs 8800, 400 bales from Vehari at Rs 8700/8800, 200 bales from Chichawatni at Rs 8700, 400 bales of cotton from Tando Adam at Rs 9000 and 200 bales from Burewala at the same rate, they added.