Slow trading activity was witnessed on the cotton market on Tuesday as sellers were not keen to oblige buyers due to shortage of fine quality, dealers said.
The official spot rate maintained overnight level at Rs9000, they added. In ready session, about 1800 bales of cotton changed hands between Rs8100-9000, they said.
Rate of seed cotton per 40kg in Sindh low quality was at Rs2800, while the best quality was at Rs4200, and in the Punjab prices of low quality were at Rs3000 while the fine type was at Rs4600, they said.
In Sindh, Binola prices per maund were at Rs1400-1800, in Punjab rates were at Rs1650-1800, they said and polyester fibre was available at Rs181 per kg, they said. According to the market sources, the ginners adopted a wait-and-see attitude towards issuance of fortnightly figure by the Pakistan Cotton Ginners Association (PCGA).
They said that mills and spinners were keen to replenish their stock to meet requirements, in the meantime, it looks that prices may not decline sharply in the coming days.
Cotton analyst, Naseem Usman said that positive outcome of a pact between US and China will revive trading activity on the cotton market in days to come. He also said that partly because of transporters' strike and cool weather propelled both buyers and sellers to refrain from new deals.
Besides, China's Vice Premier Liu will visit Washington over Jan 13-15 to sign a trade agreement.
Adds Reuters: ICE cotton futures rose on Monday, hitting a more than eight-month high, supported by optimism ahead of the signing of a Phase 1 US-China trade deal.
Cotton contracts for March rose 0.21 cent, or 0.29%, to 71.52 cents per lb by 1303 p.m. EST (1803 GMT). The March contracts rose to 71.96 cents earlier in the session, the level last seen on May 9, 2019.
Total futures market volume fell by 21,046 to 25,362 lots. Data showed total open interest gained 4,671 to 245,037 contracts in the previous session.
The following deals reported: 400 bales of cotton from Sinjiro sold at Rs8100, 400 bales from Khanewal at Rs8450 and 1000 bales from Rahim Yar Khan at Rs9000, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 13-01-2020
===========================================================================
37.324 kg 9,000 160 9,160 9,160 NIL
Equivalent
40 kgs 9,645 171 9,816 9,816 NIL
===========================================================================
Comments
Comments are closed.