Official spot rate declined modestly on the cotton market on Thursday in the process of trading, dealers said.
The official spot rate dropped by Rs50 to Rs9050, they added. In the ready session, more or less 3000 bales changed hands between Rs8525-9300, 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 Rs173 per kg, they added.
According to the market sources, it is surprising to note that cotton prices are moving up globally, but despite shortage of fine type, rate are not increasing as was expected.
The ginners who were hoping for rise in prices, disappointed by stagnant position in the cotton market, they noted.
Cotton analyst, Naseem Usman said that decline in official spot rate is indicating that prices may not sustain present levels in the near future.
Adds Reuters: Cotton futures rose to a near three-week high on Wednesday as the number of coronavirus cases dropped in China, easing fears of an economic slowdown in the world's second-largest economy.
Cotton contracts for May rose 0.97 cent, or 1.4%, to 69.84 cents per lb by 1:29 p.m. EST (1829 GMT).
Total futures market volume fell by 19,566 to 35,633 lots. Data showed total open interest fell 4,976 to 206,890 contracts in the previous session.
The following deals were reported: 600 bales of cotton from Rohri at Rs8750, 821 bales from Rahim Yar Khan at Rs9300, 800 bales from Fort Abbas at Rs8525-8800 and 600 bales from Haroonabad at Rs8800, 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 19-02-2020
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37.324 kg 9,050 160 9,210 9,260 -50/-
Equivalent
40 kgs 9,699 171 9,870 9,923 -53/-
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