Trade activity came down slightly on the cotton market on Wednesday as some needy mills preferred to make deals on reports of shortfall in arrivals of seed cotton, dealers said. The official spot rate was unchanged at Rs 8,700, they added. In the ready session, about 6000 bales of cotton changed hands between Rs 8090-8900, they said.
Prices of seed cotton in Sindh and Balochistan were at Rs 3000-3500 and in Punjab seed cotton prices at Rs 3000-3600, they said. According to market sources, some leading buyers were busy in fresh buying of cotton to replenish their stock. Recently, Finance Minister, Asad Umer assured traders and cotton related people to provide maximum facilities as textile sector is country's biggest source of foreign exchange earning.
He also promised to provide due attention to the textile sector, so many spinners hoping that business activity will improve in the coming days. Cotton analyst Naseem Usman said that trade activity may pick up with gradual pace due to shortfall of cotton arrivals. Textile spinners are keenly awaiting Statutory Release Order (SRO) for allowing duty free import of cotton permitted by the Economic Coordination Committee (ECC).
Some time ago, the ECC meeting approved the withdrawal of customs duty, additional customs duty and sales tax on import of cotton effective from 1st of February till 30th June 2019 to ensure sufficient supply of cotton for the industry.
Adds Reuters: ICE cotton futures settled higher on Tuesday, as the market looked forward to developments in the trade talks between top exporter the United States and China, the biggest consumer of the natural fiber. The most active cotton contract on ICE Futures US-the March contract-settled up 0.3 cent, or 0.41 percent, at 74.15 cents per lb. It traded within a range of 73.5 and 74.45 cents a lb.
Total futures market volume rose by 10,546 to 29,668 lots. Data showed total open interest fell 91 to 230,720 contracts in the previous session. Cotton analysts believe that around 125,000 more bales would arrive from cotton fields while stocks held by ginners are now depleting fast, owing to some demand coming from small spinners also.
Besides, World Wildlife Fund (WWF) is holding a symposium in Sadiqabad in order to promote organic cotton in Balochistan with collaboration of Directorate of Agriculture Extension, government of Balochistan. The following deals reported: 5000 bales of cotton from Rahim Yar Khan at Rs 8850, 400 bales from Khanpur at Rs 8850 and 600 bales from Mianwali at Rs 8090, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 29-01-2019
===========================================================================
37.324 kg 8,700 160 8,860 8,860 NIL
Equivalent
40 kgs 9,324 171 9,495 9,495 NIL
===========================================================================
Comments
Comments are closed.