Cotton prices steady on modest trade

Cotton prices showed firmness on the local market on Thursday in the process of moderate trading activity, dealers said. The official spot rate was inert at Rs 8750, they added. Slight arrival was seen in the arrivals of the seed-cotton per 40kg from Lower Sindh was available at Rs 3800-4100, they said. In the ready session, nearly 2600 bales of cotton changed hands between Rs 8900-8950, they said.
According to the market sources, trading activity could not improve sharply as the ginners were reluctant to sell the commodity at prices offered by spinners. Cotton Analyst, Naseen Usman sharing apprehensions on the proposal seeking withdrawal of zero-rating regime, Aptma said that the move would adversely impact export production and deter local and foreign investment.
Trading activity would improve after the Eid-ul-Fitr holidays, dealers said. Adds Reuters: Cotton prices fell on Wednesday after a 3-session rally, weighed down by escalating US-China trade tensions and a federal report showing good crop plantation numbers for the natural fibre. Cotton contracts for July settled down 0.41 cent, or 0.59%, at 69.06 cents per lb. It traded within a range of 68.61 and 69.81 cents a lb. The front month contract touched its highest level since May 10 at 69.81 cents per lb earlier in the session.
Total futures market volume fell by 11,201 to 23,133 lots. Data showed total open interest gained 963 to 215,815 contracts in the previous session. The following deals were report: about 1000 bales of cotton from Sadiqabad sold at Rs 8950 and 1600 bales of cotton from Rahim Yar Khan at Rs 8900, 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 29-05-2019

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37.324 kg          8,750       160        8,910        8,910            NIL

Equivalent

40 kgs             9,377       171        9,548        9,548            NIL

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