Trade activity came down on the cotton market on Saturday as mills and spinners kept on the sidelines due to higher rates, dealers said. The official spot rate was unchanged at Rs 8950, they added. In ready session, 5,000 bales of cotton changed hands between Rs 8800-9150, they said.
Rates of seed cotton per 40kg in Sindh were at Rs 3000-4200 and in the Punjab prices were at Rs 3800-4400, they said. In Balochistan, seed cotton prices were at Rs 4000-4600 and cotton prices were at Rs 8700-8900, they said.
In Sindh, Binola prices per maund were at Rs 1550-1600 and in Punjab rates were at Rs 1550-1650, they said and adding that polyester fibre was at Rs 187. Market sources said, it appeared that mills were not ready to oblige ginners, who were trying to raise asking prices because of short supply position.
Cotton analyst, Naseem Usman said that mills showed no interest in fresh deals as they wanted to see the present developments in the market. He said that to keep a balance between demands and supply locally, the government may import nearly five million bales of cotton to meet local demand.
The government has to give extra attention to the cotton industry to ensure supply of raw material to textile industry, which earns 13 billion dollars in foreign exchange and is a major job provider, he added. Cotton prices were holding firm on Friday, after the release of the weekly export-sales report, as investors awaited more information regarding the trade agreement between the United States and China.
The front-month December contract was up 0.1 cent, or 0.2%, at 65.09 cents per lb as of 1:53 p.m. EDT (1753 GMT) and was trading in a very tight range of 65.00 and 65.39 cents a lb. Total futures market volume fell by 10,067 to 21,088 lots. Data showed total open interest gained 2,392 to 241,614 contracts in the previous session.
The following deals reported: 1000 bales of cotton from Rohri at Rs 8875/9000, 1000 bales from Khairpur at Rs 8800/8900, 2000 bales from Khanewal at Rs 9100, 200 bales from Mianwali at Rs 9150, 400 bales from Hasilpur at Rs 9000 and 400 bales from Rajanpur at Rs 8925, 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 18-10-2019
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37.324 kg 8,950 160 9,110 9,110 NIL
Equivalent
40 kgs 9,592 171 9,763 9,763 NIL
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