Cotton market: Prices fluctuate slightly on subdued business

Prices fluctuated marginally on the cotton market on Saturday in the process of slow trading activity, dealers said.

The official spot rate was unchanged at Rs 9300, they added. In ready session, nearly 6,000 bales of cotton changed hands between Rs 8800-9550, they said.

Rates of seed cotton per 40kg in Sindh were at Rs 3600-4500 and in the Punjab prices were at Rs 3800-4800, they said. In Balochistan, seed cotton prices were at Rs 4200-4900, they said.

In Sindh, Binola prices per maund were at Rs 1400-1700 and in Punjab rates were at Rs 1550-1750, they said and adding that polyester fibre was at Rs 185. According to the market sources, some needy textile millers showed interest in fresh buying of fine quality cotton.

Cotton analyst, Naseem Usman said that business activity was down as most of the mills preferred to be on the sidelines due to liquidity crunch.

Prices may fall slightly in the coming days, he added.

Reports showing that India's cotton production in 2019/20 is likely to jump 13.6% due to a bigger cultivated area and a boost to yields from above-average monsoon rains, a leading trade body forecast on Friday.

Exports from the world's biggest cotton producer, however, are likely to remain steady at last year's level of 4.2 million bales, the lowest in a decade, as prices in the local market are trading above the global benchmark, the Cotton Association of India (CAI) said.

Adds Reuters: India's cotton production in 2019/20 is likely to jump 13.6% due to a bigger cultivated area and a boost to yields from above-average monsoon rains, a leading trade body forecast on Friday.

Exports from the world's biggest cotton producer, however, are likely to remain steady at last year's level of 4.2 million bales, the lowest in a decade, as prices in the local market are trading above the global benchmark, the Cotton Association of India (CAI) said.

The following deals reported: 600 bales of cotton from Ghotki at Rs 9450, 400 bales from Mirpur Mathelo at Rs 9450, 400 bales from Khanpur Mehar at Rs 9400, 1000 bales from Sadiqabad at Rs 9550, 1400 bales from Rahim Yar Khan at Rs 9550, 600 bales from Khanpur at Rs 9550, 400 bales from Fort Abbas at Rs 9200, 400 bales from Hasilpur at Rs 8925, 400 bales from Haroonabad at Rs 8850 and 200 bales from Bhakhar 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 08-11-2019
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37.324 kg         9,300       160         9,460        9,460            NIL
Equivalent
40 kgs            9,967       171        10,138       10,138            NIL
===========================================================================