Trade activity rises on cotton market

Trade activity improved on the cotton market on Tuesday, dealers said.

The official spot rate was unchanged at Rs 9000, they added. In ready session, about 13,000 bales of cotton changed hands between Rs 8250-9200, they said.

Rates of seed cotton per 40kg in Sindh were at Rs 2600-4300 and in the Punjab prices were at Rs 3500-4400, they said. In Balochistan, seed cotton prices were at Rs 3500-4300, they said.

In Sindh, Binola prices per maund were higher at Rs 1400-1750 and in Punjab rates were up at Rs 1600-1800, they said and adding that polyester fibre was available at Rs 181.

According to market sources most of the mills were active to replenish their stock. Liquidity crunch is persisted among buyers, but falling rates attracted them, which helped to increase the volume of business, they said.

Cotton analyst, Naseem Usman said that it looks that shortage of quality cotton propelled mills to make fresh buying of cotton.

Adds Reuters: Cotton futures rose more than 1% to near one-week high on Monday as renewed hopes that the United States and China will reach a trade deal lifted demand for the natural fibre.

Cotton contracts for March settled up 0.95 cent, or 1.46%, at 65.80 cents per lb. It rose to 65.90 cents earlier in the session, the level last seen on November 19.

Total futures market volume fell by 7,395 to 19,879 lots. Data showed total open interest fell 3,183 to 197,313 contracts in the previous session.

The following deals reported: 200 bales of cotton from Dherki sold at Rs 9150-9200, same figure from Ghotki finalised at the same rate, 1400 bales from Saleh Pat at Rs 8650-8725, 1000 bales from Khairpur at Rs 8350-8500, 2000 bales from Rahim Yar Khan at Rs 9100-9200, 600 bales from Sadiqabad at Rs 9100, 600 bales from Fort Abbas at Rs 8600, 2000 bales from Chistian at Rs 8350-8600, 600 bales from Haroonabad at Rs 8350-8600, 1200 bales from Yazman Mandi at Rs 8400-8600, 600 bales from Faqeerwali at Rs 8350-8400, 400 bales from Vehari at Rs 8250-8300, same figure from Burewala at the same rate and 1000 bales from Bahawal Nagar at Rs 8600, 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 25-11-2019
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37.324 kg         9,000       160         9,160        9,160            NIL
Equivalent
40 kgs            9,645       171         9,816        9,816            NIL
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