Cotton market performed well during the week after the announcement of the mini-budget, dealers said on the cotton market on Saturday. The official spot rate was unchanged at Rs 8,700, they added. In the ready session, over 5000 bales of cotton changed hands between Rs 7500-8800, they said. Prices of seed cotton in Sindh and Punjab were at Rs 3000-3700 and in Balochistan, rates of seed cotton were at Rs 3200-3700, they said. Market sources said the cotton market showed better performance as volume of business improved after the announcement of mini-budget 2019.
Whereas, they observed that country's foreign Exchange Reserves also went up to 8.636 billion dollars after inclusion of 2 billion dollars from Saudi Arabia and Abu Dhabi Fund for Development (ADFD). Cotton analyst Naseem Usman said that some leading mills and exporters indulged in buying of low type to replenish their stock. Leading spinners seem to be focusing on import of cotton as rates of cotton in the global market are low and quality is high, he added.
Other brokers said that the unsold cotton stocks held by ginners would be available in the country because picking in the cotton fields has dwindled considerably. Other experts said that textile spinning industry is still keenly waiting for Statutory Release Order (SRO) for duty free imports of cotton.
Adds Reuters: ICE cotton futures rose more than 1 percent on Friday fuelled by gains in stock and oil markets as well as a weaker dollar, with short covering by investors lending further support. The most active cotton contract on ICE Futures US - the March contract settled up 0.99 cent, or 1.35 percent, at 74.13 cents per lb. It traded within a range of 73.25 and 74.24 cents a lb.
Cotton prices struggled in 2018, largely due to the trade tussle between top exporter the United States and China, the biggest consumer of the natural fibre. Total futures market volume rose by 6,705 to 25,000 lots. Data showed total open interest fell 938 to 230,713 contracts in the previous session. In other parts of the world, cotton prices were mixed in the process of trading.
The following deals reported: 200 bales of cotton from Rohri at Rs 8200, 1400 bales from Ghotki at Rs 8800, 600 bales from Layyah at Rs 8700/8750, 200 bales from Rahim Yar Khan at Rs 8700, 2000 bales from Jalalpur at Rs 8600/8650, 200 bales from Fort Abbas at Rs 8500, 400 bales from Mianwali at Rs 8400, 400 bales from Mian Channu at Rs 7800 and 100 bales from Toba Tek Singh at Rs 7500, 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 25-01-2019
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37.324 kg 8,700 160 8,860 8,860 NIL
Equivalent
40 kgs 9,324 171 9,495 9,495 NIL
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