Cotton spot rate up

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Karachi : With a fresh increase of Rs100 per maund (37.324 kilograms), the Karachi Cotton Association (KCA) has revised up the cotton spot (average) rate by a total of Rs400 in the last two weeks to Rs6,700 per maund, the association reported on Wednesday.




“The rate of cotton is going up in Pakistan due to continuous depreciation in the rupee in parity with the dollar,” Girdhari Lal, a broker at the Karachi Cotton Exchange, said.


He said that a dollar was available at Rs103 from below Rs100 about two days ago. The situation has made cotton import expensive and convinced spinning mill-owners to buy the commodity at the current rate from the local markets than importing it. “The cotton is available at Rs6,800 per maund at the local markets against the landed cost of import of Rs7,100 to Rs7,200 per maund,” he said. Traders exchanged a total of 5,400 bales (155 kilograms each) at Rs6,675 to Rs6,800 per maund as compared to 8,700 bales traded at Rs6,650 to Rs6,700 per maund a day ago, the KCA reported. At New York cotton market, October futures contract dropped by 0.68 cents per pound to 84.67 cents, while December futures contract lowered by 0.73 cents per pound to 84.37 cents, it said.

Courtesy:  The News

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