Cotton market: Rates fluctuate slightly amid modest trading

Prices fluctuated slightly on the cotton market on Thursday in process of modest trading activity, dealers said.

The official spot rate was unchanged at Rs 9000, they added. In ready session, about 10,000 bales of cotton changed hands between Rs 8200-9100, 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 rates were at Rs 1400-1700, in Punjab and Balochistan rates were at Rs 1500-1600, they said and adding that polyester fibre was available at Rs 181.

Market sources said that main buyers were on the sidelines due to prevailing uncertainty on the political front.

According to reports, Supreme Court granted a six-month extension to the term of the army head General Qamar Javed Bajwa, after initially blocking a three-year extension of his tenure.

During the last several sessions, traders were disturbed due to prevailing situation, but now hoping for positive change with the passage of time, they said

Cotton analyst, Naseem Usman said that the government must provide basic facilities to the cotton growers to get desired cotton production target in future.

Adds Reuters: ICE cotton futures were mostly unchanged on Wednesday in low volume trade ahead of the US Thanksgiving holiday, while investors awaited further developments on trade negotiations between the United States and China.

Cotton contract for March was flat at 65.95 cents per lb by 01:49 p.m. EST. It traded within a range of 65.27 and 66.1 cents a lb.

Total futures market volume fell by 11,151 to 13,565 lots. Data showed total open interest gained 1,238 to 198,775 contracts in the previous session.

The following deals reported: 400 bales of cotton from Shehar at Rs Sultan at Rs 9150, 4400 bales from Rahim Yar Khan at Rs 9000/9100, 1000 bales from Sadiqabad at Rs 9000/9100, 800 bales from Tunsa Shareef at Rs 8450/8650, 400 bales from Shadan Lund at Rs 8600, 1000 bales from Fort Abbas at Rs 8350/8375, 400 bales from Faqeerwali at Rs 8350, 600 bales from Yazman Mandi at Rs 8400, 800 bales from Hasilpur at Rs 8200/8300 and 400 bales from Bahawal Nagar at Rs 8200, 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 27-11-2019
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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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