Subdued business was seen on the cotton market on Saturday in process of trading, dealers said. The official spot rate was unchanged at Rs 7,500, they added. In the ready session, a single deal reported till our going to the press, they said. According to market sources, rates of cotton are firm and may maintain present levels in the coming days. Cotton analyst, Naseem Usman said that there are chances of new cotton season will start with cotton prices at Rs 8,500 and seed cotton rates at Rs 4,000.
He said that the cotton prices may not go up sharply but it looks that rates to maintain realistic levels in the coming days due to higher rates in the international market Under the circumstances, when major buyers are concentrating on imports to discourage sharp rise in local prices, however, there are some chances of domestic cotton production will be less from the estimated cost due to various reasons, other experts said.
Commenting on the State Bank of Pakistan (SBP) move, they said that rise in interest rate from 6 percent to 6.5 percent will impact on cotton prices. Lint prices will go up further as cotton trade almost depends on banks loans. In the world market, cotton prices went up on strong demand, they said. The following deal was reported: a deal of 2600 bales of cotton from Rahim Yar Khan at Rs 7200, 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 25-05-2018
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37.324 kg 7,500 145 7,645 7,645 NIL
Equivalent
40 kgs 8,038 155 8,193 8,193 NIL
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