KARACHI: Cotton rates plunged in line with the international market amid modest activity. The official spot rate dropped further by Rs 50 to Rs 4,750, dealers said. In the ready session, around 3,000 bales of cotton changed hands between Rs 4600 and Rs 4900, they said. The seed cotton rates of inferior type fell in Sindh by Rs 100 to Rs 1600 while the best variety maintained overnight level at Rs 2300, in Punjab price of low type was inert at Rs 1700, the good type, shed Rs 50 to Rs 2500, they said.
State Bank of Pakistan (SBP) announced to cut its key discount rate to 8.5 percent from 9.5 percent in line with analyst expectations, citing lower inflationary pressure due to falling global oil prices.
Cotton futures slipped to near a 5-1/2 year low on Friday, returning earlier gains, as a strong dollar and dragging crude oil prices offset a flurry of buying after strong weekly US government export data. The front-month March cotton contract on ICE Futures US fell as low as 57.15 cents a lb, the weakest price since September 2009, and was down 0.54 cent, or 0.9 percent, at 57.23 cents at 12:30 pm EST (1630 GMT). The following deals reported: 400 bales of cotton from Pir Mehal at Rs 4600, same figure from Bahawal Nagar at Rs 4625, same figure from Faquirwali at Rs 4700-4725, 600 bales from Haroonabad at Rs 4700-4725, same number from Maroot at Rs 4725 and 1000 bales from Yazman Mandi at Rs 4725-4900, they added.
