The volume of business was firm on the cotton market on Saturday following the announcement of incentives' package by the government for growers, dealers said. The official spot rate was unchanged at Rs 6700, they said. In ready session, approximately 400 bales of cotton from Rahim Yar Khan at Rs 7000, they said. Cotton analyst, Naseem Usman said that the government must announce the Support Price for seed cotton (per 40 kg) to help growers.
Like other countries of the world, this year Pakistan may be able to achieve higher cotton production in the current season, he added. Other brokers said that cotton growers and farmers were seeking free of cost cotton seed to improve yield. Some experts were of the view that ban on cotton import from India, besides, ban on sowing of rice in Nawabshah and favourable weather giving impression of better outcome.
Adds Reuters: ICE cotton futures surged to trade limit up on Friday, hitting a near-three year high and settling at the highest since June, 2014 on strong demand from pending mill fixations and fund buying as supplies of the natural fibre have been tightening.
The benchmark cotton contract on ICE Futures US settled up 3 cents, or 3.79 percent, at 82.18 cents per lb., the highest since June 2014 Weekly export sales data from the US Department of Agriculture (USDA) on Thursday showed net upland sales for the 2016-17 crop last week totalled 160,600 running bales, up 5 percent from the week before.
The July cotton contract on ICE Futures US settled up 3 cent, or 3.79 percent, at 82.18 cents per lb. It traded within a range of 79.15 and 82.18 cents a lb. The contract rose about 5.7 percent this week, the highest since mid-July. Total futures market volume fell by 11,077 to 54,652 lots. Data showed total open interest fell 1,529 to 252,511 contracts in the previous session. Only one deal of 400 bales of cotton from Rahim Yar Khan finalised at Rs 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 12-05-2017 in Rupees
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37.324 kg 6,700 135 6,835 6,835 Nil
Equivalent
40 kgs 7,180 145 7,325 7,325 Nil
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