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Last update: Tue, 31 May 2016 05am

Cotton and Textiles

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A lacklustre activity was witnessed on the cotton market on Monday as mills and spinners kept on the sidelines in absence of motivating factors, dealers said. The official spot rate was inert at Rs 5,550, dealers said. In ready session, around 500 bales of cotton from Jhol finalised at Rs 4200, they said. Market sources said that leading participants failed to make several deals ahead of federal budget 206-17.
All Pakistan Textile Association (APTMA) Chairman Tariq Saud Monday appreciated timely decision of the federal government to reintroduce 'Zero Rating or No-Tax and No-Refund Regime' for the textile sector - the largest export oriented sector and contributes more than 55 percent of foreign exchange earnings through exports.
Prices improved modestly on the cotton market on Saturday as some needy mills took interest in fresh buying, dealers said. The official spot rate recovered overnight loss by Rs 50 to Rs 5,550, dealers said. In ready session, around 5000 bales of cotton changed hands between Rs 5500 and Rs 5750, they said. According to the market sources, mills and spinners showed their interest in fresh buying to meet requirements.
Prices failed to maintain firmness on the cotton market on Friday as mills and spinners kept on the sidelines in the absences of motivating factor, dealers said. The official spot rate was lower by Rs 50 to Rs 5,500, dealers said. In ready session, approximately 600 bales of cotton changed hands between Rs 5400 and Rs 5450, they said.
Cotton futures jumped on Thursday to their highest price since May 3, fuelled by investor buying across commodities markets and hopes that China may boost import quotas, lifting demand from the United States and other top exporters. "Many commodities were stronger today against a slightly weaker US dollar," said INTL FCStone Senior Risk Management Consultant Andy Ryan. He also noted mounting market speculation that Beijing may release additional import quotas for processing as being behind the gains.
The following were the fluctuations observed during the day:

A steadier trend was witnessed on the cotton market on Thursday amid slow trading activity, dealers said. The official spot rate was unchanged at Rs 5,550, dealers said. In ready session, approximately 1000 bales of cotton changed hands between Rs 5200 and Rs 5800, they said. According to the market sources, sharp increase in the rates of cotton the world over failed to change present scenario in the local market as spinners were on the sidelines due to lack of fresh buying interest.