Cotton Market: Prices Recover As Textile Sector Welcomes Incentives

Cotton Market: Prices Recover As Textile Sector Welcomes Incentives
Prices showed modest improvement on the cotton market on Saturday as mills continued buying following the incentives to the textile sector, announced in the budget 2016-17, dealers said. The official spot rate recovered by Rs 50 to Rs 5,600, dealers said. In Sindh, seed-cotton prices were at Rs 3000-3100, per 40 kg, they said. In ready session, around 1000 bales of cotton changed hands between Rs 5400-5600, they said.
According to reports, the revival of zero-rating regime for the textile and clothing exports appears to have buoyed the country’s largest industry. There are anticipations that concessions will help the industry competitive in the world market, other experts said. Cotton analyst, Naseem Usman said local mills, spinners and growers welcomed the announcements and the hoping exports of textile sector will show visible improvement in times to come.
Reuters adds: ICE cotton futures rose about 2 percent on Friday, snapping four days of declines with help from the weather and weekly US export sales data amid a weaker dollar. The market factored in the “good” export sales data along with the rains in the West Texas, said Jordan Lea, chairman and co-owner of Eastern Trading in Greenville, South Carolina, adding that there also was a lot of short covering.
Sales of upland cotton totalled 124,900 running bales in the most recent week, down 3 percent from a week earlier December cotton contract on ICE Futures US settled up 1.24 cent, or 1.98 percent, at 63.91 cents per lb. It traded within a range of 62.81 and 63.95 cents a lb. The following deals reported: 200 bales of cotton from Ghotki at Rs 5800, 400 bales from Bahawalpur at Rs 4850, 200 bales from Jalalpur at Rs 5700, 1400 bales from Khanpur at Rs 5800, 500 bales from Rahim Yar Khan at Rs 5800, 400 bales from Sadiqabad at Rs 5800 and 400 bales from Rajanpur at Rs 5800, they said.