Cotton prices rise on renewed buying by mills

Cotton prices improved on the local market on Saturday due to mills' renewed buying to replenish their stock, dealers said. The official spot rate maintained overnight level Rs 8800, they added. In ready session, about 10,000 bales of cotton changed hands between Rs 7950-9200, 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 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 per kg.

Some brokers observed that mills played active role in fresh deals today after the government's move. Reports showing that the government is paying Rs 30 billion refunds against bond issued earlier. In fact, shortage of quality lint is a basic factor for declining demand by mills and spinners, cotton analyst, Naseem Usman said. Prices may not fall sharply in days to come, they added.

Adds Reuters: Cotton futures jumped more than 2% on Friday, lifted by upbeat comments from US President Donald Trump on trade talks with China, while robust monthly jobs report out of the United States provided further support to the market.

Cotton March futures rose 1.61 cents, or 2.5% - on track for their biggest daily percentage gain in nearly two months - to 66.12 cents per lb by 1:40 p.m. ET (1840 GMT). Total futures market volume rose by 3,756 to 25,373 lots. Data showed total open interest gained 349 to 197,361 contracts in the previous session.

The following deals reported: 200 bales of cotton from Nawabshah at Rs 6900, (BCI), 400 bales from Adilpur at Rs 8900, 1000 bales from Ghotki at Rs 8900/9200, 1000 bales from Khairpur at Rs 7950/8500, 1400 bales from Rahim Yar Khan at Rs 9000, 3000 bales from Khanpur at Rs 8900/9000, 600 bales from Sadiqabad at Rs 9000, 1400 bales from Haroonabad at Rs 8000/9000 (Condition), 400 bales from Mianwali at Rs 8800 (Condition) and 400 bales from Faqeerwali at Rs 8400, 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  06-12-2019
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37.324 kg         8,800       160         8,960        8,960            NIL
Equivalent
40 kgs            9,431       171         9,602        9,602            NIL
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