Seed cotton prices up on modest trade

Seed cotton prices were higher on the cotton market on Tuesday amid cautious buying by mills and spinner, dealers said. The official spot rate was unchanged at Rs8750, they added. In ready session, over 7,000 bales of cotton changed hands between Rs8000-9000, they said.

Rate of seed cotton per 40kg in Sindh low quality was at Rs3200, while the best quality was available at Rs4100, and in the Punjab prices were at Rs3500-4300, they said. In Sindh, Binola prices per maund were at Rs1400-1800, in Punjab rates were at Rs1650-1800, they said and adding that polyester fibre was available at Rs179 per kg.

Market sources surprised over the modest buying by mills after the Sino-US pact. Some experts observed that in ready session prices of cotton fell instead of moving up. Cotton analyst, Naseem Usman also said that the modest buying from textile spinners was as a result of short supply of fine quality.

In the meantime, a few mills showed interest in purchasing of cotton but below their psychological levels, other experts said. Cotton prices were mixed in the international markets, other brokers said.

Adds Reuters: ICE cotton futures were mostly unchanged on Monday, as investors remained cautious and awaited for more details on the "phase one" US-China trade deal.

Cotton contracts for March rose 0.02 cent, or 0.03%, at 66.82 cents per lb by 01:01 p.m. EST (1801 GMT). Total futures market volume fell from 25,107 to 20,621 lots. Data showed total open interest gained 1,983 to 202,674 contracts in the previous session.

The following deals reported: 400 bales from Mirpur Mathelo at Rs9000, same number from Ghotki at Rs8900, 1600 bales from Khairpur at Rs8000-8200, 600 bales from Tando Adam at Rs8200, 800 bales from Rahim Yar Khan at Rs8900, 600 bales from Khanpur at Rs8850-8900 and 2000 bales from Donga Bonga at Rs8050-8100, 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  16-12-2019
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37.324 kg         8,750       160         8,910        8,910            NIL
Equivalent
40 kgs            9,377       171         9,548        9,548            NIL
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