Firmness prevails on cotton market

Firmness prevailed on the cotton market on Wednesday in the process of moderate trading activity, dealers said.

The official spot rate was unchanged at Rs 9000, they added. In ready session, about 13,000 bales of cotton changed hands between Rs 7900-9250, they said.

Rates of seed cotton per 40kg in Sindh were lower at Rs 2600-4300 and in the Punjab prices were down at Rs 3500-4400, they said. In Balochistan, seed cotton prices were at Rs 3500-4300, they said.

In Sindh, Binola prices per maund were higher at Rs 1400-1750 and in Punjab rates were up at Rs 1600-1800, they said and adding that polyester fibre shed Rs 2 to Rs 181.

Market sources said that mills continued buying of cotton to cover their requirements. Mills' buying helping rates to hold present levels, they said and adding that prices may not fall sharply in the near future.

Cotton analyst, Naseem Usman said that cotton demand is not improving in the international markets, so that prices are not fluctuating sharply in local and global markets, as well.

Adds Reuters: ICE cotton futures extended losses for the second straight session on Tuesday, falling nearly 1%, as investors continued liquidating on expectations of excess supply in the market.

Cotton contracts for March fell 0.57 cent, or 0.86% to 65.40 cents per lb by 01:10 p.m. EST (1810 GMT), trading within a range of 65.33 to 66.06 cents per lb.

Total futures market volume fell by 15,241 to 23,273 lots. Data showed total open interest fell 637 to 226,762 contracts in the previous session.

The following deals reported: 600 bales of cotton from Ghotki at Rs 9250, 600 bales from Dherki at Rs 9200, 400 bales from Mirpur Mathelo at Rs 9175, 5400 bales from Khairpur at Rs 8425/8700, 3000 bales from Rahim Yar Khan at Rs 9200, 600 bales from Sadiqabad at Rs 9200, 400 bales from Khanpur at Rs 9100, 400 bales from Multan at Rs 8900, 200 bales from Mianwali at Rs 8850, 600 bales from Fort Abbas at Rs 8850, 200 bales from Haroonabad at Rs 8800 and 400 bales from Rajanpur at Rs 7900/8400, 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 19-11-2019
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37.324 kg          9,000      160         9,160        9,160            NIL
Equivalent
40 kgs             9,645      171         9,816        9,816            NIL
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