Cotton prices continued to decline on the cotton market Monday due to less buying interest and because of rising fears over escalation in US-China trade war, dealers said.
The official spot rate dropped sharply by Rs 200 Rs 8100, they added. In ready session, about 8000 bales of cotton changed hands between Rs 7950-8200, they said. Rates of seed cotton per 40kg in Sindh were at Rs 3200-3700, in Punjab prices were at Rs 3400-3850, they said. In Balochistan, seed cotton prices were down by Rs 200 to Rs 3700-3800, they said.
In Sindh and Punjab, Binola prices per maund were at Rs 1450-1550, they said and adding that polyester fibre per kg rates were at Rs 192.
Market sources said that no respite was seen in drop of cotton prices due to persisting less buying interest among buyers.
Cotton analyst, Naseem Usman said that business was thin following the non-availability of vehicles as animal owners were busy in haulage of sacrificial animals from one place to another place. Buyers were on the sidelines due to financial problem, most of them anticipating that traders may take interest in fresh buying of cotton after Eid holidays, other brokers said.
Adds Reuters: ICE cotton futures slid more than 3% on Monday to their lowest in nearly three-and-a-half years on fears that escalating trade tensions between the United States and China will worsen demand for the natural fibre.
The most-active cotton contract on ICE Futures US, the second-month December contract, fell 1.93 cent, or 3.25 %, at 57.49 cents per lb as of 08:11 am EDT (1213 GMT).
Chinese cotton prices closed limit down at their lowest in more than 10 years on Monday, pressured by weak US prices for the fibre and escalating trade tensions. The most active cotton contract on the Zhengzhou Commodity Exchange, for September delivery, fell the maximum 4% to end on 12,225 yuan ($1,738.95) a tonne, its lowest since March 20, 2009.
The following deals reported: 1600 bales of cotton from Tando Adam at Rs 7950-8000, 1000 bales from Shahdadpur at Rs 8000, 2000 bales from Sanghar at Rs 7950-8000, 800 bales from Kotri at Rs 7950-8000, 600 bales from Hyderabad at Rs 7950-8000, 600 bales from Vehari at Rs 8100-8200, 1000 bales from Burewala at Rs 8100-8150 and 200 bales from Jhang at Rs 8150, 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 03.08.2019
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37.324 kg 8,100 160 8,260 8,460 - 200/-
Equivalent
40 kgs 8,681 171 8,852 9,066 - 214/-
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