Tight supply pushes rates up on cotton market

Trading activity improved on the cotton market on Monday in the process of tight supply of fine quality, dealers said. The official spot rate was higher by Rs 50 to Rs 8,850, they added. In the ready session, around 7000 bales of cotton Changed hands between Rs 8600-9200, they said. According to the market sources, some leading mills indulged in buying of quality cotton to replenish their stock. The ginners, who have not enough stock, showing no interest in fresh deals, in expectations of better profits in the coming days, they said.
In the meantime, some big deals were finalised by the ginners, they said. Some other spinners failed to lay hands over the fine variety because rates were not matching with their psychological levels, they said. Cotton analyst, Naseem Usman said that it looks that prices may go up in the near future owing to the short supply position. He observed that sowing is going well in both Sindh and Punjab, giving an impression that country may be able to achieve desired cotton production target for the next season.
Cotton prices were higher in India but rates were mixed in the other parts of the globe, other brokers said. The following deals reported: 400 bales of cotton from Dherki at Rs 9200, 1000 bales from LDC Karachi at Rs 8850, 1858 bales from Rajanpur at Rs 8900/9000, 1000 bales from Rahim Yar Khan at Rs 9000 and 2600 bales from Haroonabad at Rs 8600, 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"

                                    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 20-04-2019

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37.324 kg         8,850       160         9,010        8,960         + 50/-

Equivalent

40 kgs            9,485       171         9,656        9,602         + 54/-

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