Prices touched season's high level on the cotton market on Tuesday as mills indulged in fresh buying of lint cotton, dealers said. The official spot rate rose by Rs 100 to Rs 7600, they added. In both Sindh and Punjab, seed cotton prices were at Rs 2800-3100, they said.
In the ready session, around 8000 bales of cotton changed hands between Rs 6300-8125, they said. According to the market sources, most of the spinners showed renewed interest in fine quality, which helped the volume of business to go up.
Cotton analyst, Naseem Usman said that recent rains in the country will help in achieving the target for the next season. He also said that Pakistan Cotton Standard Institute (PCSI) is holding a seminar on Thursday in Hyderabad, cotton analysts, experts and cotton related people will take part in the event. Participants will discuss problems faced by the cotton circle, he said and adding that we can save foreign exchange by making efforts to get desired cotton production.
Cotton prices rising continuously in India as China is buying cotton to meet demand, other experts said. Furthermore, India is likely to receive average monsoon rains in 2018, the weather office said, raising the possibility of higher farm and economic growth, where half of the farmland lacks irrigation.
Other brokers observed that end session trading pattern in cotton market is responsible for the erratic movement, besides, the Pakistan Cotton Ginners Association (PCGA) fortnightly report may be released within two days. In the international markets cotton prices almost maintained an upward trend, they said.
The following deals were reported: 1600 bales of cotton from Ghotki at Rs 8125, 1655 bales from Dherki at Rs 7700, 600 bales from Rahim Yar Khan at Rs 7500, 600 bales from Layyah at Rs 6900, 1800 bales from Vehari at Rs 6600, 800 bales from Fort Abbas at Rs 6375/6450 and 1000 bales from Bahawal Nagar at Rs 6300, 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 Ex-Karachi Ex. KHI. As Ex-Karachi
on 16-04-2018
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37.324 kg 7,600 145 7,745 7,645 + 100/-
Equivalent
40 kgs 8,145 155 8,300 8,193 + 107/-
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