Modest trading activity seen on cotton market

Modest trading activity was seen on the cotton market on Saturday as the ginners were not ready to oblige the buyers on expectations of better profit in days to come, dealers said. The official spot rate was at Rs9100, they added. In the ready session, 600 bales of cotton finalised between Rs9025 and Rs9300, they said.

Rate of seed cotton per 40kg in Sindh low quality was at Rs2800, while the best quality was unchanged at Rs4100, and in the Punjab prices of low quality were at Rs2800 while the fine type was available at Rs4600, they said. In Sindh, Binola prices per maund were at Rs1400-1800, in Punjab rates were at Rs1650-1800, they said and the rate of polyester fibre was at Rs176 per kg, they added.

According to the market sources, a few deals finalised as some mills were interested in fresh buying, but the ginners were not keen for fresh buying. Cotton analyst, Naseem Usman said that less interest by the government for providing urgent needs of the cotton traders are leading factor behind the thin business activity these days.

The textile sector threatening to stop the export activities once a week, if it's demand regarding reduction in electricity rate and releasing the stuck up refund are not accepted. Higher interest rates have badly damaged consumers' financing during the first six months of the current fiscal year, other experts said.

Adds Reuters: Cotton futures edged lower on Friday weighed by investors concern over the extent of coronavirus' economic impact. March cotton settled down 0.16 cent, or 0.2%, at 67.75 cents per lb. Prices were up 0.4% for the week. It traded within a range of 67.1 and 68 cents a lb. Total futures market volume rose by 9,400 to 62,820 lots. Data showed total open interest gained 5,577 to 253,015 contracts in the previous session. The following deals were reported: 400 bales of cotton from Liaqatpur at Rs9025 and 200 bales from Fort Abbas at Rs9300, 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  07-02-2020
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37.324 kg         9,100       160         9,260        9,260            NIL
Equivalent
40 kgs           9,752        171         9,923        9,923            NIL
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