A kind of dullness prevailed on the cotton market on Saturday as most of the participants were not very active in the daily business, dealers said.
The official spot rate was unchanged at Rs 9000, they added. In the ready session, not a single deal reported till our going to the Press, they said.
Rate of seed cotton per 40kg in Sindh low quality was at Rs 2800, while the best quality picked up Rs 200 to Rs 4200, and in the Punjab prices were at Rs 3000 while the fine type was at Rs 4600, they said.
In Sindh, Binola prices per maund were at Rs 1400-1800, in Punjab rates were at Rs 1650-1800, they said and adding that rates of polyester fibre at Rs 181 per kg, they said.
Market sources said that some ginners were looking interested to sell fine quality but at asking prices, whereas, the mills were not ready to oblige them.
Explaining the latest developments, cotton analyst, Naseem Usman said that imposition of several sales taxes by the government on the doing businesses are becoming very difficult day by day.
Besides, liquidity crunch and shortage of fine quality were also playing an active role behind the lacklustre business activity, other experts said.
Traders were hoping lower-than-expected report in the Pakistan Cotton Ginners Association (PCGA) fortnightly report, they said.
Adds Reuter: Cotton futures dropped 2% on Friday and were heading for their third consecutive week of losses as investors fretted over the impact on China's economy from a virus outbreak that could hurt demand for the natural fibre in China.
Cotton contracts for March fell 1.42 cents, or 2.1%, to 67.63 cents per lb by 1:48 p.m. EST (1848 GMT). It traded within a range of 67.56 to 69.35 cents a lb
Total futures market volume rose by 7,312 to 36,128 lots. Data showed total open interest fell 583 to 266,922 contracts in the previous session.
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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 31-01-2020
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37.324 kg 9,000 160 9,160 9,160 NIL
Equivalent
40 kgs 9,645 171 9,816 9,816 NIL
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