Rates failed to maintain firm trend on the cotton market on Saturday as mills were reluctant in purchasing of cotton on high prices because phutti arrivals accelerated from both Punjab and Sindh, dealers said.
The official spot rate lost Rs 100 to Rs 8600, they added. In ready session, over 10,000 bales of cotton changed hands between Rs 8625-8750, they said. Rates of seed cotton per 40kg in both Sindh and Punjab were at Rs 3800-4100, they said. In Balochistan, seed cotton prices were at Rs 4100-4150, they said.
In Sindh and Punjab, Binola prices per maund were up by Rs 50 to Rs 1550-1600, they said and adding that polyester fibre per kg rates were at Rs 203 due to lack of buying interest, they said.
According to the market sources, the mills and spinners started showing less interest in fresh deals as seed cotton arrivals improved from both Sindh and Punjab.
Cotton analyst, Naseem Usman said that if prices show further weakness, it means, trading activity will improve due to attractive rates for buyers. He said that rains in cotton belt are beneficial for the crop.
Whereas, cotton supply may be disturbed as transports were engaged in the haulage of the sacrificial animals, naturally it's affecting movement, other experts observed.
Adds Reuters: ICE cotton futures edged higher on Friday in thin-volume trading as traders awaited developments from a meeting between US and Chinese negotiators next week.
The most-active cotton contract on ICE Futures US, the second-month December contract, settled up 0.35 cent, or 0.55%, at 64.54 cents per lb. It traded within a range of 63.57 and 64.6 cents a lb.
Total futures market volume rose by 1,184 to 13,916 lots. Data showed total open interest gained 575 to 196,588 contracts in the previous session.
The following deals reported: 2000 bales of cotton from Tando Adam at Rs 8625/8750, 1200 bales from Shahdadpur at Rs 8650, 1600 bales from Sanghar at Rs 8625/8650, 400 bales from Shahpur Chakar at Rs 8650/8700, 800 bales from Mirpurkhas at Rs 8625/8700, 200 bales from Hala at Rs 8625, 400 bales from Khadro at Rs 8650/8700, 600 bales from Kotri at Rs 8625/8650, 400 bales from Moro at Rs 8625/8700, 800 bales from Vehari at Rs 8750, 200 bales from Ahmedpur East at Rs 8750, 600 bales from Burewala at Rs 8750, 200 bales from Sahiwal at Rs 8750 and 200 bales from Hasilpur at Rs 8700, 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 26.07.2019
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37.324 kg 8,600 160 8,760 8,860 - 100/-
Equivalent
40 kgs 9,217 171 9,388 9,495 - 107/-
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