By admin       2018-01-08

Rates stabilise on the cotton market on Friday as the Economic Coordination Committee (ECC) approved a proposal for withdrawal of sales tax and customs duty on imported cotton, dealers said. The official spot rate was unchanged at Rs 7800, they said. In ready session, around 13,000 bales of cotton changed hands between Rs 6300-8000, they said. In Sindh, seed cotton prices were at Rs 2900-3600, and in Punjab rates were at Rs 2900-3650, as per 40 kg, they said. According to the reports, the ECC approved a proposal for withdrawal of sales tax and customs duty on imported cotton effective from 8th January 2018. Market sources welcomed the news and said that this could be a motivating factor and may give a boost to the business activity. Commenting on the fresh development in the market, they said that trading activity could not pick up due to lack of supply of quality lint. They also observed that the ginners who were reluctant to sell their unsold stock, not taking interest in fresh selling in anticipations of more increase in the prices. In a surprising way, they said that even high rates of cotton failed to propel ginners for making new deals. Cotton analyst, Naseem Usman said that strong demand for cotton from local spinners is upcoming Heimtextil being held from January 9-12 in Frankfurt and it is most likely that a large number of Pak exporters participate. Other analysts said that local exporters may get better response. Adds Reuters: ICE cotton futures gained 1.5 percent on Thursday, boosted by technical buying and a weaker dollar, as prices of the natural fibre crop held close to a 3-1/2 year high. The most active ICE cotton contract for March expiry settled up 1.14 cents, or 1.46 percent, at 79.25 cents per lb. It traded within a range of 78.06 and 79.39 cents a lb. Cotton futures marked a 3-1/2-year high of 79.45 cents a lb last week. Total futures market volume rose by 2,944 to 25,745 lots. Data showed total open interest fell 94 to 282,907 contracts in the previous session. The following deals reported: 1000 bales of cotton from Ghotki at Rs 8000, 1011 bales from M. P. Dewan at Rs 8050, 2000 bales from R. Y. K at Rs 7950/8000, 800 bales from Bahawalpur at Rs 7950/7985, 200 bales from Khanewal at Rs 7900, 1000 bales from Haroonabad at Rs 7850, 200 bales from Bahawalpur at Rs 7500, 1200 bales from Fort Abbas at Rs 7000, 800 bales from Hasilpur at Rs 7000, 2000 bales from Yazman Mandi at Rs 7000, 400 bales from Mongi Bangla at Rs 6800, 200 bales from Shujabad at Rs 6800, 400 bales from Bahawal Nagar at Rs 6750, 5300 bales from Mianwali at Rs 6500/6800 and 200 bales from Burewala at Rs 6300, they said.

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