Cotton prices soared further on Wednesday – up by Rs250 per maund for official rates – driven by a steep fall in rupee value against the dollar. Overall trading activity slowed down on the cotton market.
On ready counter trading prices shot up to Rs8,700 per maund – an indication that lint rates would rise further in coming days particularly when imports have become costlier due to devaluation of the rupee against dollar.
Phutti (seed cotton) prices also soared with Sindh quality being quoted between Rs3,700-4,000 per 40kg, Pun¬jab in the range of Rs3,700-4,300 and Baloch¬istan between Rs3,800-4,200.
Market sources said the cotton yarn and fabric markets were also tight with dealers generally preferring to hold on to their stocks in the hope of reaping higher profits given that prices in most commodity markets are rising.
On the global front, New York cotton earlier in the morning recovered partially but towards the closing stages once again declined. The Chinese market also closed easy.
The Karachi Cotton Association (KCA) spot rates were revised upward by Rs250 at Rs8,400 per maund.
The following deals were reported to have changed hands on ready counter: 1,200 bales, station Saleh Pat, at Rs8,650; 3,000 bales, Khairpur, at Rs8,500-8,550; 1,000 bales, Rahim Yar Khan, at Rs8,650; 2,000 bales, Rajanpur, at Rs8,500-8,600; 1,400 bales, Fazilpur, at Rs8,500-8,600; 1,000 bales, Khanewal, at Rs8,600; 1,000 bales, Bahawalpur, at Rs8,500; 600 bales, Fort Abbas, at Rs8,500; 800 bales, Burewala, at Rs8,150-8,300; and 600 bales, Haroonabad, at Rs8,300.