Rate of lint cotton showed steady trend on the cotton market on Saturday in the process of slow trading activity, dealers said. The official spot rate was unchanged at Rs 7200, they added. In Sindh, seed cotton prices were at Rs 2400-3000 and in the Punjab, rates went up at Rs 2600-3100, they said. In the ready session, approximately, 1400 bales of cotton changed hands at Rs 7600, they said.
Market sources said that reports of a short cotton crop helped rates to keep present levels. Reports showing that seed cotton (Phutti) over 11.5 million bales have reached ginneries across the country till March 1, 2018, registering an increase by 7.63 percent as compared to corresponding period of last year. According to a fortnightly report of Pakistan Cotton Ginners Association (PCGA) released, out of total arrivals, 11,524,581 bales have undergone the ginning process. Besides, the Punjab government has planned to extend subsidy of millions of rupees on approved varieties of cottonseed bags.
The ginners have only unsold stock of 7 lacs bales, most of them are low variety, other brokers said. Meanwhile, prices of cotton yarn and grey cloth cotton are firm as demand is firm from domestic industry, they added. Rates of cotton were also firm in India last days, the Cotton Association of India (CAI) put cotton production at 30.67 million bales but a recent report estimates 30.40 million bales. In China and US, cotton maintained upward trend, they said, Cotton analyst, Naseem Usman said shortage of irrigation water is causing delay in early sowing in Sindh, indicating that prices to go up further in days to come.
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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 02.03.2018
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37.324 kg 7,200 145 7,345 7,345 NIL
Equivalent
40 kgs 7,716 155 7,871 7,871 NIL
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