Cotton prices soar on fears of delay in new crop arrivals

Fears of likely delay in new cotton crop pushed the rates further higher on the local markets on Saturday in process of trading activity, dealers said. In a single day rally, the official spot rate gained further Rs 100 and within a week rose by Rs 150 to Rs 9000 they added. In the ready session, about 5000 bales of cotton changed hands between Rs 8000-9500, they said. Market sources said that cotton prices maintained upward trend on short supply fears. They said that most of the traders were under pressure as import of cotton is becoming costlier; besides, slight damage of stranding crop in Punjab is also a big problem for the mills and spinners.
The old stock is diminishing with the passage of time, so the mills were not interested in losing any deal, this is the solid factor behind the price flare-up, cotton analyst, Naseem Usman observed.
Reuters adds: ICE cotton futures settled lower on Friday, extending falls for a second week, as rains across West Texas boost favourable planting conditions for the natural fibre. The most-active cotton contract on ICE Futures US July settled down 0.62 cent, or 0.79 percent, at 77.7 cents per lb.
Total futures market volume fell by 2,869 to 21,544 lots. Data showed total open interest fell 785 to 211,834 contracts in the previous session.
The following deals reported: 3000 bales of cotton from Khanpur Mehar at Rs 9500, 200 bales from Mirpur Mathelo at Rs 8100, 400 bales from Khanpur at Rs 8100, 600 bales from Hasilpur at Rs 8725, 1007 bales from Haroonabad at Rs 8000/8700, they said.

===========================================================================

The KCA Official Spot Rate for Local Dealings in Pakistan Rupees

---------------------------------------------------------------------------

FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"

                                    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 26-04-2019

===========================================================================

37.324 kg         9,000       160         9,160        9,060        + 100/-

Equivalent

40 kgs            9,645       171         9,816        9,709        + 107/-

===========================================================================