Slow trading activity was seen on the cotton market on Tuesday because of shortage of liquidity and poor availability of fine quality, dealers said. The official spot rate was unmoved at Rs9050, they added. In the ready session, over 2400 bales of cotton changed hands between Rs6200-8200, 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 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 the rate of polyester fibre was at Rs181 per kg, they added. According to the market sources, many traders preferred to be on the sidelines because of lack of buying interest. Despite the fact that the ginners were keen to sell cotton at the present levels but due to quality conscious buyers did not take interest in fresh deals.
Cotton analyst, Naseem Usman said withdrawal of import duty by the government also provided relieve to the buyers. To deal with the rising issues, the All Pakistan Textile Mills Association (Aptma) requested the government to solve the problems as early as possible.
Owing to sharp decline in the cotton production, the ginners have very limited unsold cotton stock, despite this factor, the ginners are keen to dispose of cotton at current levels, he observed. Adds Reuter: ICE cotton futures edged lower on Monday, having slipped to a more than one-month low earlier in the session, weighed by growing fears about the spread of the coronavirus from China and its impact on global economy.
Cotton contracts for March fell 0.22 cent, or 0.3%, at 69.18 cents per lb at 2:11 PM EST (1911 GMT). Total futures market volume rose by 21,808 to 50,623 lots. Data showed total open interest gained 3,338 to 263,299 contracts in the previous session. The following deals reported: 1600 bales from Shadadpur at Rs7600-8200 and 800 bales from Sanghar at Rs6200-7500, 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 27-01-2020
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37.324 kg 9,050 160 9,210 9,210 NIL
Equivalent
40 kgs 9,699 171 9,870 9,870 NIL
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