Demand for yarn improved on the cotton market on Saturday ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly report, dealers said. The official spot rate unchanged at Rs 8,600, they added. In the ready session, only 400 bales of cotton finalised at Rs 7750, 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.
Market sources said that mills are buying cotton to replenish their stock ahead of the fortnightly PCGA report. Cotton analyst, Naseem Usman said that general trend in the market was weak as rising tensions at LoC dragging into fears. According to reports, factories across the globe slammed brakes last month as demand crashed, hit by the ongoing US-China trade war, slowing global growth and political uncertainty in Europe ahead of Britain's imminent departure from the EU.
Adds Reuters: ICE cotton futures climbed more than 1 percent on Friday to a one-week high, lifted by optimism over a possible trade deal between the United States and China, and fund buying. The most active cotton contract on ICE Futures US, the May contract settled up 1.03 cent, or 1.41 percent, at 73.85 cents per lb. Total futures market volume rose by 2,270 to 22,608 lots. Data showed total open interest gained 1,175 to 222,149 contracts in the previous session.
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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"
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 01-03-2019
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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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