Lean business was seen on the cotton market on Thursday owing to lack of buying interest by mills and spinners, dealers said.
The official spot rate maintained week-end level at Rs9000, they added. In the ready session, a deal of 1600 bales of cotton from Dherki finalised at Rs8650, dealers 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 Rs170 per kg, they added.
According to the market sources, volume of business is expanding in the international market but trading is not gaining momentum locally mainly because the mills are busy in importing cotton from other countries.
Cotton analyst, Naseem Usman said that the cotton growers were facing a lot of difficulties due to lack of sensible and practical measures by the government.
As a result of non-availability of cotton seeds, growers have started sowing chilies due to better profit, they said. Despite of the fact that PM Imran Khan promised to provide all basic facilities to the growers but the farmers are sitting in wait-and-see position. Reports showing that nearly 100 ginning factories are on sale due to fall in cotton production; this is indicating that the government has failed in providing facilities to the cotton farmers.
Adds Reuters: Cotton futures rose as much as 2% on Wednesday, helped by mill buying and a recovery in stock markets, while investors awaited weekly federal export sales data from the US Department of Agriculture.
Cotton contracts for May rose 0.25 cent, or 0.4%, to 63.02 cents per lb as of 2:19 p.m. EST (1919 GMT), trading within a range of 62.87 and 64.05 cents a lb.
Total futures market volume fell by 3,216 to 33,674 lots. Data showed total open interest fell by 265 to 201,743 contracts in the previous session.
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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 04-03-2020
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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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