Subdued trading activity was again witnessed on the cotton market on Friday amid announcement of Budget 2018-19, dealers said. The official spot rate was lower by Rs 100 to Rs 7400, they added. In both Sindh and Punjab, seed cotton prices were at Rs 2800-3100, they said. In the ready session, around 2000 bales of cotton changed hands between Rs 6325-7400, they said. Some brokers said that best quality of cotton was not available, so the genuine buyers kept on the side during announcement of budget.
Cotton analyst, Naseem Usman said that in the cotton growing areas of Lower Sindh cotton sowing is facing problems due to non-availability irrigation water, may hurt production of cotton for the coming season. Commenting on the Budget speech, he said that there were long slogans for concessions and facilities, but under the circumstances, growers and farmers were losing their hopes as they have a lot of grievances from the government. It's surprising to note that the country has no dams to compensate irrigation water, no pure cotton seeds and no best quality pesticides, they said.
Reports showing that the cotton outlook (Cotlook) in its April forecast reduced its projections for both global consumption and production of cotton in the 2018-19 crop year. In the meantime, the cotton market is performing well as a result of some demand from value-added textile industry which encouraged spinners to keep production of yarn, some experts said. They also said that the end season coupled with shortage of quality lint kept proceedings dull.
The leading world cotton markets gave rising trend, they said. The following deals were reported: 600 bales of cotton from Yazman Mandi at Rs 7400, 200 bales from Ahmedpur East at Rs 7400, 200 bales from Dharanwala at Rs 6450 and 800 bales from Fort Abbas at Rs 6325, 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 26-04-2018
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37.324 kg 7,400 145 7,745 7,645 - 100/-
Equivalent
40 kgs 7,931 155 8,086 8,193 - 107/-
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