Cotton market: cautious buying by mills on quality factor

Selective buying by mills was witnessed on the cotton market on Wednesday in the process of modest trading, dealers said. The official spot rate was unchanged at Rs 8,800, they added. Prices of seed cotton in Sindh improved slightly at Rs 3000-4000, in the Punjab seed cotton prices were at Rs 3300-4000 and in Balochistan, rates of seed cotton were at Rs 3600-4000, they said. In the ready session, about 10,000 bales of cotton changed hands between Rs 7700-9100, they said.
Market sources said that some leading mills could not make deals in a big way owing to quality factor. Cotton analyst, Naseem Usman said that cotton yarn demand showed slight improvement, which is an encouraging factor under the circumstances. Stock of fine quality coming down with the passage of time, the country is importing cotton keep a balance between demand and supply, he added.
According to reports, cotton prices were higher in US and Chinese markets, the rates, however, dropped in Indian market.
The following deals reported: 400 bales of cotton from Saleh Pat at Rs 8750, 200 bales from Mirpurkhas at Rs 8400, 400 bales from Khanpur at Rs 9100, 1800 bales from Rahim Yar Khan at Rs 9000/9100, 1000 bales from Shujabad at Rs 9000, 2000 bales from Fazilpur at Rs 9000, 1000 bales from Donga Bonga at Rs 8800, 2800 bales from Alipur at Rs 8400-8800, 200 bales from Multan at Rs 8450, same figure from Fort Abbas at Rs 8350, same number from Chistian at Rs 8200, same figure from Hasilpur at Rs 8800 and 400 bales from Haroonabad at Rs 7700, 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 11-12-2018

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37.324 kg         8,800       160        8,960         8,960            NIL

Equivalent

40 kgs            9,431       171        9,602         9,602            NIL

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