Moderate business activity seen on cotton market

Ginners showed less interest in fresh deals on the cotton market on Wednesday owing to lack of fresh leads, dealers said.

The official spot rate was at Rs9100, they added. In the ready session, only 1400 bales of cotton finalised at Rs8400-Rs9350, they said.

Rate of seed cotton per 40kg in Sindh low quality was at Rs2800, while the best quality was unchanged at Rs4100, and in the Punjab prices of low quality were at Rs2800 while the fine type was available 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 Rs176 per kg, they added.

According to the market sources, mills came forward to make deals, but the ginners were not interested in panic selling as they have little stock of unsold lint.

Cotton analyst, Naseem Usman said that if the ginners will sell cotton at the present levels, they will be losers. They will be beneficial if they keep patient, he added.

The NY cotton futures were higher, while cotton prices were mixed in other parts of the globe.

The following deals were reported: 200 bales of cotton from Rahim Yar Khan at Rs9350, 400 bales from Bago Bajar at Rs8900, 200 bales from Haroonabad at Rs8500 and 600 bales from Chistian at Rs8400, brokers 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  11-02-2020
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37.324 kg         9,100       160         9,260        9,260            NIL
Equivalent
40 kgs            9,752       171         9,923        9,923            NIL
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