Traders still in grip of uncertainties

As a result of continued fall in the dollar's value against the rupee, the traders are still in grip of uncertainties on the cotton market on Thursday, dealers said. The official spot rate was down by Rs 100 to Rs 8,750, they added. Prices of seed cotton in Sindh were lower by Rs 200 to Rs 3600-4100, in the Punjab seed cotton prices were at Rs 3700-4100 and in Balochistan, rates of seed cotton were at Rs 3800-4300, they said.

In the ready session, about 25,000 bales of cotton changed hands between Rs 8100-9100, they said.

Market sources said that dollar's sudden increase versus the rupee, forced cotton traders to adopt wait-and-see attitude but on the other hand, most of them gave up their idea and continued buying of quality cotton to replenish their stock.

Cotton analyst, Naseem Usman said that it's very obvious that in any case mills can't keep on the sidelines or cannot wait for decline in prices to make forward deals. At the same time, reports showing that exporters are not able to quote the correct rates required for entering into deals with their overseas buyers.

In the meantime, growers were relaxed as present rates were matching with their psychological levels, other brokers said.

Cotton prices almost drifted lower in the international markets, they said.

The following deals reported: 400 bales of cotton from Khipro at Rs 8100, 1400 bales from Tando Adam at Rs 8300/8400, 400 bales from Mirpurkhas at Rs 8300, 600 bales from Shahdadpur at Rs 8250, 2000 bales from Nawabshah at Rs 8400, 2000 bales from Khairpur at Rs 8650/8750, 1000 bales from Rohri at Rs 8700/8850, 1000 bales from Saleh pat at Rs 8800/8850, 1000 bales from Ghotki at Rs 8900/9000, 800 bales from Dherki at Rs 8900/9000, 600 bales from Mirpur Mathelo at Rs 8950, 800 bales from DG Khan at Rs 9100, 400 bales from Fazilpur at Rs 8900, 1800 bales from Rahim Yar Khan at Rs 8875/8900, 2200 bales from Sadiqabad at Rs 8875/8900, 800 bales from Rajanpur at Rs 8775/8850, 400 bales from Uch Sharif at Rs 8825, 400 bales from Alipur at Rs 8800, 200 bales from Head Bakani at Rs 8790, 600 bales from Mianwali at Rs 8750, 400 bales from Ahmedpur East at Rs 8700, 1800 bales from Fort Abbas at Rs 8650/8700, 200 bales from Marrot at Rs 8700, 200 bales from Yazman Mandi at Rs 8700, 200 bales from Chichawatni at Rs 8500, 600 bales from Faqeerwali at Rs 8500 and 600 bales from Haroonabad at Rs 8500, they said.