Dollar's unprecedented rise and short supply of cotton are dominating factors in the local market these days, pushing rates up sharply on shortage problem, dealers said on Thursday. The official spot rate was higher by Rs 200 to Rs 9100, they added. Prices of seed cotton in Sindh were higher at Rs 4000-4500 in the Punjab, rates followed the suit, picking up same amount at Rs 3800-4600, they said.
In ready session, around 3000 bales of cotton finalised within the range of Rs 9300-9500, they said. Market sources said that most of the ginners were not keen in selling due to soaring rates of dollar. In the meantime, spinners and mills were trying to lay hands over the fine lint despite the higher rates.
Cotton analyst, Naseem Usman said that the government imposed custom duties and sales tax on import of cotton and unprecedented surge in dollar's value fuelling rise in the cotton market, and nobody knows how far present trend will continue. A kind of anxiety prevailed in the market with the passage of time, even traders were not sure about their confirmed deals, just before some weeks because rates of dollar shot up versus the rupee, other brokers said.
The growers and farmers must take care of stagnant water in the cotton fields, they must try to clean or dispose off rainy water, in Punjab monsoon rains started again, so, the cotton growers may begin cotton sowing, which may help in achieving the target, other brokers said. In New York and Indian markets, cotton prices were down in the process of trading activity, they said. Following deals reported: 200 bales for Burewala done at Rs 9500, same figure from Noabad and 800 bales from Sanghar done at the same rate, 1000 bales of cotton from Tando Adam at Rs 9350-9400, 200 bales from Sanghar at Rs 9350, 200 bales from Khipro at the same level and same number from Vehari at Rs 9300, they added.
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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
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 18-07-2018
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37.324 kg 9,100 145 9,245 9,045 + 200/-
Equivalent
40 kgs 9,752 155 9,907 9,693 + 214/-
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