Prices of cotton dropped modestly on the cotton market on Saturday in the process of trading, dealers said. The official spot rate dropped Rs 50 and within week lost Rs 200 to Rs 8800, they added. In the ready session, about 1400 bales of cotton changed hands between Rs 8000-8900, they said. According to the market sources, prices continued decline owing to less buying interest among mills and spinners. Fall in cotton yarn demand is also a big concern for the sellers.
Cotton analyst, Naseem Usman said that mills have already covered their forward buying, so it looks that volume of business may not expand ground before or during Ramazan. Adds Reuters: ICE cotton futures settled higher on Friday snapping five sessions of decline supported by a strong US job growth data, though the prices registered their biggest weekly decline since December. The most-active cotton contract on ICE Futures US July settled up 0.23 cent, or 0.3 percent, at 75.68 cents per lb. It traded within a range of 75.43 and 76.31 cents a lb.
Total futures market volume fell by 11,960 to 16,316 lots. Data showed total open interest gained 3,739 to 219,230 contracts in the previous session. The following deals reported: 400 bales of cotton from Buchari at Rs 8000, 400 bales from Rahim Yar Khan at Rs 8900 and 600 bales from Khanpur at Rs 8850, 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"
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 03-05-2019
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37.324 kg 8,800 160 8,960 9,010 - 50/-
Equivalent
40 kgs 9,431 171 9,602 9,656 - 54/-
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