Cotton market: prices gain momentum on improved activity

Rates of cotton showed further increase on the local market on strong demand by small mills, dealers said on Thursday. The official spot rate was up by Rs 50 to Rs 8750, they added. In the ready session, about 6000 bales of cotton changed hands between Rs 8600-9500, they said. According to the market sources, recent rise in interest rate and unprecedented increase in dollar rate pushed the rates of all essential higher, including cotton and textile products.
Cotton analyst, Naseem Usman said that after sharp decline in the value of rupee, the local currency has halted slide in it's value versus the dollar, which may help in stabilising rates of all commodities. The government has withdrawn subsidy facility from textile sector, which is creating problem for cotton traders, other experts said.
Adds Reuters: Cotton prices extended losses on Wednesday as China and the United States battled tit-for-tat in their long-drawn trade tiff and as favourable planting weather in parts of Texas promised larger crop harvests. Cotton contracts for July settled down 0.57 cent, or 0.85%, at 66.75 cents per lb. It traded within a range of 66.12 and 67.45 cents a lb.
Total futures market volume fell by 2,799 to 20,978 lots. Data showed total open interest gained 1,164 to 215,527 contracts in the previous session. Following deals were reported: 2000 bales of cotton from Dherki at Rs 8850, 400 bales from Dherki at Rs 9500, 1000 bales from Sadiqabad at Rs 8950, 1000 bales from Khanewal at Rs 8600 and 1600 bales from Rahim Yar Khan at Rs 8800, 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 22-05-2019

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37.324 kg         8,750       160        8,910         8,860         + 50/-

Equivalent

40 kgs            9,377       171        9,548         9,495         + 53/-

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