Cautious buying by mills and spinners was seen on the cotton market on Friday as most of the ginners were not ready to make any deal in a big way, dealers said.
The official spot rate maintained week-end level at Rs 9000, they added. In the ready session, 400 bales of cotton finalised between Rs 8950-9300, dealers said.
Rate of seed cotton per 40kg in Sindh low quality was at Rs 2800, while the best quality was unchanged at Rs 4100, and in the Punjab prices of low quality were at Rs 2800 while the fine type was available at Rs 4600, they said.
In Sindh, Binola prices per maund were at Rs 1400-1800, in Punjab rates were at Rs 1650-1800, they said and adding that rate of polyester fibre was trading at Rs 173 per kg, they said.
Market sources said that some needy mills and spinners are under pressure due to non-availability of fine quality cotton at the present levels.
The ginners, who have limited stock of cotton, are not keen to dispose off their stock in anticipation of better profit in the near future, they added.
Cotton analyst, Naseem Usman said that the government's recent corrective measures likely to bring fruitful result in the coming days.
According to the reports, the government has agreed to withdraw notification of surcharge and taxes on export-oriented industry from Jan 2019 to June 2020. Now, the government will charge on 7.5 cents per unit tariff to export-oriented industry.
Prime Minister Imran Khan has urged the textile sector to prepare a comprehensive report related to difficulties in the way of achieving goals within time. At the same time, the farmers and growers were hoping for Cotton Support Price very soon, other experts said.
Adds Reuters: Cotton futures slumped more than 4% on Thursday to their lowest level in over four months as fears about the economic impact of the spreading coronavirus dented risk sentiment among investors.
Cotton contracts for May settled down 2.97 cent, or 4.5%, at 62.5 cents per lb. It traded within a range of 62.47 and 65.47 cents a lb.
Total futures market volume rose by 25,279 to 64,946 lots. Data showed total open interest gained 817 to 195,727 contracts in the previous session.
The following deals were reported: 200 bales of cotton from Fort Abbas at Rs 8950 and same figure from Mian Chunnu at Rs 9300 (stock), they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 27-02-2020
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37.324 kg 9,000 160 9,160 9,160 NIL
Equivalent
40 kgs 9,645 171 9,816 9,816 NIL
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