Home / Knowledge / News / Textiles / Cotton futures trade to commence within 3 months
Cotton futures trade to commence within 3 months
25
May '11
Cotton futures trade is set to start at the Pakistan Mercantile Exchange (PMEX) over the next three months. This would make it possible for the traders to cover risk against volatility in prices.

As stated by PMEX, it first intends to launch future contracts in sugar, and hence it would take some time to start the same for cotton, as some modalities in relation to the contracts still need to be decided.

Officials from the textile industry have been engaged by the PMEX to make way to introduce cotton futures.

The PMEX stated that, there are some constraints on traders' exposure to future contracts, and added that, it would soon work out the same and inform the investors before commencement of the trade.

In recent weeks, a sharp fall has been witnessed in cotton prices which plummeted from Rs. 13,000 per bale in early part of the year to Rs. 8,500 per bale, and has thus resulted in losses to the yarn producers who had purchased cotton earlier at high prices.

Future contracts, besides allowing the cultivators, ginners and yarn producers to hedge against unpredicted movement in cotton prices, would also open up a new investment avenue for investors.

In cotton futures, though there is no physical transfer of commodity, it allows the buyers and sellers to lock a particular price, and hence it allows the trader to handle risk.

However, the textile millers in the country are resistant to futures contract as they are apprehensive that it would upset the pricing of age-old physical trading at the Karachi Cotton Exchange. Also there are concerns regarding high speculation in cotton futures.

Nonetheless, the PMEX stated that, the future contract prices would be standardised with New York cotton futures rates, which the local market uses as an indicator for fixing the prices, and hence there should not be any apprehensions regarding the same.

Fibre2fashion News Desk - India


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search