Pakistan: local cotton rates maintained

Unchanged conditions have prevailed in the cotton market today. Desirable quality cotton is still commanding between Rs. 6,850 to Rs. 7,100 per maund (roughly 75.35/78.00 US cents per lb, at the mid-point of the prevailing exchange rate), ex-gin and lower grades between Rs. 5,900/6,500 per maund, depending on the quality. Despite yesterday’s drop in ICE futures, local stocks remain in very tight hands as the current depreciation of the rupee against the US dollar (today’s rate is Rs.110.00/111.00, versus Rs.108.00/108.50 yesterday) has been very supportive for local prices. As the cost of imported cotton has risen in dollar terms, ginners are confident in holding domestic stocks in the expectation of higher prices. A moderate turnover has been witnessed, as mills have covered further volumes

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