Commodities: Cotton prices steady amid renewed demand

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KARACHI: Cotton prices on Tuesday stayed firm as limited unsold stocks of up to 0.6 million bales caused nervousness among leading spinners who still need a substantial quantity of raw cotton to meet their near-term requirements.

Ginners were willing sellers at the prevailing prices as their hopes of getting higher rates were dashed by the declining trend on the New York Cotton Exchange amid forecast of a bumper US crop owing to favourable weather conditions.

The New York cotton futures fell 2.59 cents.

Spinners were active in the market as imports have become costlier after a massive devaluation of the local currency.

According to preliminary reports, Pakistani traders are unwilling to import cotton from India citing quality issues whereas imports from the US are also not possible because the duty waiver allowed by the government up to June 30 could not be availed because of the long time required in shipments.

The Karachi Cotton Association left its spot rates unchanged at the overnight level of Rs8,800 per maund.

The following big-lot deals of the large size reported to have changed hands on the ready counter: 100 bales, station Dherki, at Rs9,000; 6,000 bales, Karachi (LDC to mill), at Rs8,700 to Rs8,850; 1,065 bales, Akri, at Rs7,865 and 2,800 bales, Rahimyar Khan, at Rs8,750 to Rs9,000.

Published in Dawn, April 17th, 2019