Sluggish business activity seen on cotton market

Rates of lint showed firmness on the cotton market on Tuesday after the issuance of the Pakistan Cotton Ginners Association (PCGA) fortnightly report, dealers said. The official spot rate was inert at Rs9100, they added. In the ready session, about 1200 bales changed hands between Rs8500-9300, 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 Rs173 per kg, they added. According to the market sources, some leading mills indulged in fresh buying of lint. They said that prices may depict to slight improvement in days to come.

Cotton analyst, Naseem Usman said that as usual arrivals of seed cotton are lower-than-expected, which may help in increasing the volume of business. The cotton growers and farmers are facing disastrous situation despite of so many precautionary measures by the government, he observed.

Best quality cotton seed is not available in the country, how farmer can cultivate or grow fine variety of cotton, other experts said. Pakistan is an agriculture country and it is very shocking that at the time of sowing, growers facing tough time for not getting quality cotton seed from sellers.

Reports showing that seed cotton (Phutti) equivalent to over 8.5 million bales has reached ginneries across Pakistan till February 15, 2020 registering 20.12 per cent shortfall compared to corresponding period of last year.

Out of total arrivals, over 7.96 million bales have undergone the ginning process, according to a fortnightly report released to media by Pakistan Cotton Ginners Association (PCGA). Besides, locust attack on different crops in the country is also another disappointing factor, they added.

Adds Reuters: The New York cotton futures were closed for a public holiday. In other parts of the world, cotton prices were almost soft, dealers said. The following deals were reported: 800 bales of cotton from Mianchuunu at Rs8500-8950, 200 bales from Faqirwali at Rs8900 and 200 bales from Chichawatni at Rs9300, 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  17-02-2020
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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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