Volume of business improved on the local cotton market on Tuesday on expectations of a possible trade deal between the United States and China, dealers said. The official spot rate was unchanged at Rs 8,600, they added. In the ready session, about 9000 bales of cotton changed hands between Rs 7200-8875, they said.
Prices of seed cotton in Sindh were at Rs 3000-3500, in Punjab seed cotton prices at Rs 3000-3600 and in Balochistan prices were at Rs 3200-3500, they said. They observed that locally traders were looking optimistic about the US-China trade talks. Whereas, the US President Donald Trump said he would delay a planned hike in tariffs on Chinese imports and that he was "very, very close" on a trade deal.
Market sources said that rising tensions between India and Pakistan failed to make any negative impact on surge in demand by the mills and spinners. Cotton analyst, Naseem Usman observed that tensions between India and Pakistan creating a kind of uncertainties in the region, the issues should be settle down as soon as possible.
Adds Reuters: ICE cotton futures settled higher on Monday as investors bid for the natural fiber in anticipation of a possible trade deal between the United States and China. The most active cotton contract on ICE Futures US, the May contract, settled up 0.09 cent, or 0.12 percent, at 73.1 cents per lb.
Total futures market volume fell by 26,558 to 16,751 lots. Data showed total open interest gained 2,512 to 219,105 contracts in the previous session. Cotton prices moved both ways in other parts of the world, they said.
The following deals reported: 3200 bales of cotton from Rahim Yar Khan at Rs 8000/8600, 1000 bales from Shujabad at Rs 7200, 1000 bales from Chowk Mundra at Rs 7500, 400 bales from Rajanpur at Rs 8875, 530 bales from Pul Bagar at Rs 8425, 800 bales from Sadiqabad at Rs 8750, 200 bales from Bahawalpur at Rs 7650 and 1400 bales from Alipur at Rs 8600, 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 25-02-2019
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37.324 kg 8,600 160 8,760 8,760 NIL
Equivalent
40 kgs 9,217 171 9,388 9,388 NIL
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