Cotton prices slide further on subdued business

Rates continued decline on the cotton market on Wednesday in the process of subdued trading activity, dealers said. The official spot rate continued to slide for the second day in a row, dropping Rs 100 to Rs 8400, they added. In ready session, 1000 bales of cotton changed hands at Rs 8600, they said. Rates of seed cotton per 40kg from Lower Sindh were at Rs 3300-3700, they said.
Binola per maund prices were at Rs 1400-1450, they said. Polyester fibre rates were at Rs 192, they said. Approximately, 3000 bales of cotton (new crop) changed hands between Rs 7650-8000, they said. According to the market sources, main buyers were on the sidelines owing to less buying interest.
Cotton analyst, Naseen Usman said that farmers found virus attack on the standing cotton crop, it is also a factor behind the lack of buying interest from the leading buyers.
In the meantime, some growers and farmers were hoping for monsoon rains may bring pleasure change in the coming days, brokers said.
In other parts of the world, the cotton prices were mixed, they said.
Reuters adds: ICE cotton futures were largely unchanged on Tuesday, as the market awaited more information from the plantings acreage report and the meeting between Washington and Beijing at the Group of 20 Summit due later this week.
The most-active cotton contract on ICE Futures US, the third-month December contract, settled up 0.03 cent, or 0.05%, at 65.72 cents per lb.
Total futures market volume fell by 2,744 to 14,552 lots. Data showed total open interest fell 592 to 175,217 contracts in the previous session.
The following deals were reported: 1000 bales of cotton from Alipur at Rs 8600 and around 3000 bales from Lower Sindh changed hands between Rs 7850-8000, 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 25-06-2019

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

37.324 kg         8,400       160        8,560         8,660        - 100/-

Equivalent

40 kgs            9,002       171        9,173         9,280        - 107/-

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