December 15, 2017

Rupee’s firmness provides relief to buyers.

The Pak rupee's firmness versus the dollar provided a relief to the buyers, causing modest business on the cotton market on Thursday, dealers said.

The official spot rate gained further strength to Rs 50 to Rs 6,850, they said. In ready session, over 22,000 bales of cotton changed hands between Rs 6200-7300, they said. In Sindh, seed cotton prices were same at Rs 2800-3300, in the Punjab, rates also held the overnight levels at Rs 2800-3400, as per 40 kg, they said.

 

Some analysts said that it has no doubt that due to short supply of lint cotton the local buyers were concentrating on buying of fine cotton. Since dollar started soaring in terms of the rupee, they got panic laying hands on purchasing of good quality cotton during the last sessions but today they were on the sideline to observe developments.

 

They expect that trading activity may take pace next week, they said. Cotton analyst, Naseem Usman said that tight supply against strong demand may push rates up in the coming days. Adds Reuters: ICE cotton rose over 1.5 percent on Thursday, after falling for three straight sessions, supported by fund-buying and a softer dollar.

 

Cotton contracts for March settled up 1.22 cent, or 1.67 percent, at 74.13 cents per lb. It traded within a range of 72.91 and 74.23 cents a lb. Total futures market volume fell by 8,133 to 23,922 lots. Data showed total open interest gained 1,289 to 254,060 contracts in the previous session. The following deals reported: 400 bales of cotton from Mirpur Mathelo at Rs 7300, 400 bales from Ghotki at Rs 7300, 800 bales from Saleh Pat at Rs 6700/6800, 800 bales from Rohri at Rs 6700/6800, 1200 bales from Khairpur at Rs 6600/6800, 1400 bales from Rahim Yar Khan at Rs 7250/7300, 600 bales from Khanpur at Rs 7300, 800 bales from Sadiqabad at Rs 7300, 400 bales from Kot Sabzal at Rs 7300, 400 bales from Liaquatpur at Rs 7150, 200 bales from Mian Channu at Rs 7100, 1200 bales from Hasilpur at Rs 6500, 600 bales from Haroonabad at Rs 6500, 600 bales from Fort Abbas at Rs 6500, 400 bales from Layyah at Rs 6400 and 1400 bales from Burewala at Rs 6200/6300, they said.