Volume of business improves on cotton market

Volume of business depicted a significant improvement on the cotton market on Tuesday due to fresh buying by mills, dealers said. The official spot rate held the overnight levels at Rs 5,400, dealers said. In Sindh, prices of seed cotton were at Rs 2000 and Rs 3000 and in the Punjab, rates were at Rs 2300 and Rs 3100, they said.
In the ready business, around 12000 bales of cotton changed hands between Rs 5300 and Rs 5700, they said. Experts said that needy mills indulged in an urgent buying of fine lint to replenish their stock. It is most likely that the prices may stabilise in the coming days, they said. Commenting on the dearth of fine quality cotton analyst, Naseem Usman said that the cotton farmers were worried about the poor variety of seeds.
To achieve better quality of cotton in future, they are seeking concerned authority's cooperation, he said. They just want to replace new cotton seeds from old, he added. As a whole, in the world market, the business is not picking up due to slow progress in Chinese economy, he observed.
According to the Reuters, the US markets were closed on Monday in observance of Martin Luther King Jr Day. The following deals finalised: 600 bales from Khairpur at Rs 5500, 400 bales from Haroonabad at Rs 5300, 400 bales from Fort Abbas at Rs 5300, 200 bales from Multan at Rs 5350, 6000 bales from Rahim Yar Khan at Rs 5350/5700, 400 bales from Mianwali at Rs 5525, 3000 bales from Sadiqabad at Rs 5600 and 400 bales from Ahmedpur at Rs 5700, they said.

===========================================================================

The KCA Official Spot Rate for Local Dealings in Pakistan Rupees

---------------------------------------------------------------------------

FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"

---------------------------------------------------------------------------

                                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

===========================================================================

Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference

                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi

                                                  on 18-01-2016

===========================================================================

37.324 kg         5,400       135         5,535        5,535            NIL

Equivalent

40 kgs            5,787       145         5,932        5,932            NIL

===========================================================================