Prices picked up modestly and trading activity also improved on the cotton market on Wednesday on emergence of fresh buying interest by mills and spinners, dealers said. The official spot rate was unchanged at Rs 6650, they said. In Sindh, seed cotton prices were at Rs 3300-3400, in Punjab prices were at Rs 3300-3700, as per 40 kg, they said.
In the ready season, around 10,000 bales of cotton sold at Rs 6400-7000, they added. Some brokers said that tight supply against rising demand pushed rates up amid moderate trading session. They said that rates showed modest rise as current season has almost reached its closing season, very little phutti has been left in the field. To improve quality of production, the ginners are urging the government to give relief package to the ginning industry, they added.
They said that local prices were firm following the persistent rise in the international markets. Cotton analyst, Naseem Usman said that the mills and spinners preferred to make deals of quality cotton at present levels and it looks that rates may show slight gains in the coming days. Besides, he said that the Federal Cotton Committee (FCC) is holding it's meeting on March 6 (Monday) to estimate cotton production for 2017-18.
According to Reuters, the New York cotton futures posted fresh gains on Tuesday. The following deals were reported: 1682 bales of cotton from Karachi sold at Rs 6400-6900, 200 bales from Haroonabad at Rs 6800, same figure from Faqirwali, same number from Fort Abbas all sold at the same rate, 175 bales from Donga Bonga at Rs 6850, 785 bales from Khanpur at Rs 6900, 1700 bales from Mian Chano at Rs 6930 and 4125 bales from Sadiqabad at Rs 6925-7000, 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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Expenses Ex-Karachi Ex. KHI, As Ex-Karachi
on 28-02-2017 in Rupees
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37.324 kg 6,650 135 6,785 6,785 NIL
Equivalent
40 kgs 7,127 145 7,272 7,272 NIL
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