Cotton market: Prices raised by ginners after PCGA data

The ginners have started raising asking prices after the Pakistan Cotton Ginners Association (PCGA) fortnightly data, showing further decline in phutti arrivals, dealers said on the cotton market here on Wednesday.

The official spot rate was unchanged at Rs 8900, they added. In ready session, about 9000 bales of cotton changed hands between Rs 8000-9200, 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 maintained. In Balochistan, seed cotton prices were at Rs 3500-4300, they said.

In Sindh, Binola prices per maund 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 179.

Market sources said that the mills were keen to buy low quality of cotton but the ginners refrained from selling, trying to make profit as much as they can.

Cotton analyst, Naseem Usman said that the government had set the crop's target at 15 million bales for 2019-20 season but, so far, the output has been discouraging.

Other brokers said that after achieving 14.98 million bales in 2013-14, cotton output has been on decline; as a result the government is importing cotton to meet local demand, which is extra burden on the foreign exchange reserves.

It's high time that the government must take urgent steps to cope up with the gloomy situation, they observed.

Adds Reuters: ICE cotton futures fell over 1% to a more than one-week low on Tuesday as comments from US President Donald Trump diluted optimism around a potential breakthrough in the US-China trade dispute.

Cotton contracts for March fell 0.69 cent, or 1.06%, to 64.11 cents per lb by 01:44 p.m. ET, the level last seen on Nov. 22. It traded within a range of 64.05 to 64.93 cents a lb.

Total futures market volume fell by 5,712 to 26,444 lots. Data showed total open interest fell 2,856 to 196,990 contracts in the previous session.

The following deals reported: 200 bales of cotton from Mirpur Mathelo at Rs 9000/9200, 1000 bales from Dherki at Rs 9175/9200, 1000 bales from Ghotki at Rs 9175/9200, 400 bales from Panu Aqil at Rs 9175/9200, 1400 bales from Rahim Yar Khan at Rs 8950/9000, 1000 bales from Sadiqabad at Rs 9000, 1000 bales from Khanpur at Rs 8900, 1400 bales from Fort Abbas at Rs 8250/8450, 400 bales from Bahawalpur at Rs 8000, 600 bales from Mianwali at Rs 8000 and 200 bales from Donga Bonga at Rs 8000, 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  03-12-2019
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37.324 kg         8,900       160         9,060        9,060            NIL
Equivalent
40 kgs            9,538       171         9,709        9,709            NIL
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