Cotton prices fall on moderate trade

Prices continued gradual decline on the cotton market on Tuesday in the process of moderate trading activity, dealers said. The official spot rate was unchanged at Rs 8900, they added. In ready session, over 11,000 bales of cotton changed hands between Rs 8000-9000, they said.

Rates of seed cotton per 40kg in Sindh were at Rs 2600-4300 and in the Punjab prices were 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 at Rs 1400-1700, in Punjab and Balochistan rates were at Rs 1500-1600, they said and adding that polyester fibre was available at Rs 179.

According to the market sources, prices slid further as demand from textile spinners slowed down owing to shortage of liquidity and poor availability of fine quality. Cotton analyst, Naseem Usman said that prices continued weakness due to short supply of cotton. According to the All Pakistan Textile Mills' Association (APTMA), to meet local requirement, the country has to import nearly 6 million bales. Country has already finalised contract to import approximately 3.5 million bales of cotton.

Report showing that seed cotton (Phutti) equivalent to 7.44 million or 7,447,544 bales reached ginneries across Pakistan till Dec 1, 2019, registering 20.49 per cent shortfall compared to corresponding period of last year. Out of total arrivals, over 6.9 million or 6,952,342 bales have undergone the ginning process, according to a fortnightly report released by the Pakistan Cotton Ginners Association (PCGA).

Adds Reuters: ICE cotton futures fell for the third straight session to a one-week low on Monday as lack of clear signs over a trade deal between the United States and China kept investors on edge. Cotton contract for March were down 0.54 cent, or 0.83%, to 64.82 cents per lb by 02:15 p.m. ET (1915 GMT), a level last seen on November 25.

Total futures market volume rose by 13,644 to 27,848 lots. Data showed total open interest gained 834 to 199,846 contracts in the previous session. The following deals reported: 1000 bales of cotton from Rohri at Rs 8350/8500, 1600 bales from Khairpur at Rs 8100/8150, 3000 bales from Sadiqabad at Rs 9000, 400 bales from Marrot at Rs 8425, 1400 bales from Khanewal at Rs 8425, 800 bales from Faqeerwali at Rs 8250, 400 bales from Fort Abbas at Rs 8250, 400 bales from Ahmedpur East at Rs 8000, 200 bales from Haroonabad at Rs 8000, 400 bales from Daranwala at Rs 8000, 200 bales from Hasilpur at Rs 8000, 400 bales from Vehari at Rs 8000 and 1400 bales from Mianwali at Rs 8000/8150, 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  02-12-2019
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37.324 kg         8,900       160         9,060        9,060            NIL
Equivalent
40 kgs            9,538       171         9,709        9,709            NIL
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