Cotton prices failed to keep present levels on the cotton market on Saturday in the absence of fresh lead, dealers said. The official spot rate dropped by Rs 50 to Rs 9000, they added. In the ready session, not a single deal finalised 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 was unchanged at Rs 4100, and in the Punjab prices of low quality were at Rs 2800 while the fine type was available 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 the rate of polyester fibre was at Rs 173 per kg, they added.
According to the market sources, buyers are surprised over the lethargic position these days despite short supply of fine quality. Under the circumstances, they are not ready to sell their unsold stock. On the other hand, cotton analyst, Naseem Usman said that the arrivals of new crop are at least five month away as cultivation is yet to be done. Meanwhile, unsold is short of demand which is a mater of concern for the industry as the production was fallen significantly this year, other brokers said. In many areas of Sindh wheat crop harvest is near and partial cotton sowing will begin in March, other experts said.
Adds Reuters: Cotton futures dipped on Friday as a spike in new coronavirus cases intensified fears that the epidemic will hurt the global economy and in turn demand for the natural fibre. Cotton contracts for May settled down 0.37 cent, or 0.5%, at 69 cents per lb. It traded within a range of 68.45 to 69.36 cents a lb. Total futures market volume fell by 12,476 to 27,674 lots. Data showed total open interest fell 5,110 to 202,450 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 21-02-2020
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37.324 kg 9,000 160 9,160 9,210 - 50/-
Equivalent
40 kgs 9,645 171 9,816 9,870 - 54/-
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