Shortage of fine lint, helped rates to keep present levels on the cotton market on Saturday in the process of modest trade, dealers said. The official spot rate was unchanged at Rs 6800, they said. In the ready session, over 1000 bales of cotton changed hands between Rs 6800 and Rs 7050, they said. Market sources said that some needy mills and spinners indulged in fresh buying to replenish their stocks. The declining textile exports and energy crisis are keeping buyers away from the normal business, they added.
They further said that textile sector is facing liquidity crunch because of strike by goods carriers. Cotton analyst, Naseem Usman said that the government is not providing required facilities to the mills, so some of them were expecting announcement of incentives and facilities in the budget.
Adds Reuters: ICE cotton futures rose slightly on Friday, snapping a three session losing streak on a weaker dollar, offsetting losses from recent export sales cancellations, increasing acreage and favourable weather for the natural fibre.
Favourable weather in top growing regions and export cancellations from India and China along with optimistic acreage expectations by the US Department of Agriculture put pressure on prices. The July cotton contract on ICE futures US fell about 3.3 percent this week after prices touched near three-year highs earlier in the week.
The July cotton contract on ICE Futures US settled up 0.21 cent, or 0.27 percent, at 79.45 cents per lb. It traded within a range of 78.42 and 79.5 cents a lb. Total futures market volume rose by 1,120 to 28,463 lots. The following deals reported: 300 bales from Lodhran at Rs 6800, same figure from Khanewal at Rs 6900, 200 bales from Sadiquabad at Rs 7000 and 400 bales from Yazman Mandi at Rs 7050, 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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Expenses Ex-Karachi Ex. KHI, As Ex-Karachi
on 19-05-2017 in Rupees
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37.324 kg 6,800 135 6,935 6,835 Nil
Equivalent
40 kgs 7,288 145 7,433 7,433 Nil
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