November 12, 2019
KARACHI: Cautious buying was seen on the cotton market on Monday as mills kept on the sidelines on quality factor, dealers said. The official spot rate was unchanged at Rs 9300, they added. In ready session, nearly 3,000 bales of cotton changed hands between Rs 5400-9450, they said.
Rates of seed cotton per 40kg in Sindh fell sharply at Rs 3000-4250 and in the Punjab prices were at Rs 3800-4600, they said. In Balochistan, seed cotton prices were at Rs 4200-4700, they said. In Sindh, Binola prices per maund were at Rs 1400-1700 and in Punjab rates were at Rs 1550-1750, they said and adding that polyester fibre shed Rs 2 to Rs 183.
Market sources said that a kind of cautious buying was seen as most of mills indulged in what to do and what not to do position owing to unavailability of best quality cotton. Cotton analyst, Naseem Usman said that liquidity problems, short supply of fine quality lint propelled mills to keep away from big deals.
In fact, demand of cotton is not picking up in the international market, besides, developments on the economic and political fronts were not very encouraging, other experts observed. According to State Bank of Pakistan (SBP), recently, the foreign exchange reserves have increased to 16 billion dollars.
Remittances have surged to 10 percent. On the other hand, President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain said growth rate of all regional countries is improving except for Pakistan. (Source: Business Recorder)