Fears of short supply push cotton rates up

Fears of short supply of lint cotton pushed rates higher on the cotton market on Monday, dealers said. The official spot rate picked up Rs 100 to Rs 6,500, they said. In the ready session, over 10,000 bales of cotton changed hands between Rs 5950-6800, they said. In Sindh seed cotton prices were at Rs 2700-3200, in the Punjab rates were at Rs 2800-3300, as per 40 kg, they said.
Cotton analyst, Naseem Usman said, business activity came down as most of the leading buyers kept on the sidelines due to lack of buying interest. There are rising fears that prices of lint cotton likely to go up in the coming days due to shortage problem, other experts said.
Many spinners were keen to import cotton due to export consignments, they said and adding that the textile industry has already entered into import contracts worth 1.6 million bales from other countries. The following deals were reported to have changed hands on the ready counter: 200 bales of cotton from Shahdadpur at Rs 5950, 1600 bales from Khairpur at Rs 6350/6400, 1000 bales from Saleh Pat at Rs 6500, 1000 bales from Rohri at Rs 6500, 600 bales from Doulatpur at Rs 6200, 1200 bales from Rahim Yar Khan at Rs 6800, 600 bales from Yazman Mandi at Rs 6600, 400 bales from Ahmedpur East at Rs 6600, 200 bales from Fort Abbas at Rs 6600, 200 bales from Bahawalpur at Rs 6600, 200 bales from Dera Ghazi Khan at Rs 6800, 800 bales from Sadiqabad at Rs 6800, 200 bales from Tonsa Shrif at Rs 6800, 400 bales from Mianwali at Rs 6550, 600 bales from Burewala at Rs 6500, 200 bales from Jalalpur at Rs 6675, 200 bales from Rajanpur at Rs 6650, 200 bales from Shehar Sultan at Rs 6600 and 400 bales from Alipur at Rs 6800, 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     Ex-Karachi  Ex. KHI. As   Ex-Karachi

                                                  on 18.11.2017

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37.324 kg          6,500      145         6,645         6,545        +100/-

Equivalent

40 kgs             6,966      155         7,121         7,014        +107/-

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