Volume of business went up on the cotton market on Tuesday as some leading mills indulged in panic buying following the uncertainties created by spread of coronavirus the world over, dealers said. The official spot rate maintained week-end level at Rs 9000, they added. In the ready session, near about 12000 bales of cotton changed hands between Rs 8650-9000, 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, trading activity improved on panic buying of fine quality lint causing by rising uncertainties over the spread of coronavirus. The main issue is limited stock of quality lint and increase in demand, helped the rates to sustain present levels. On the other hand, the ginners in the local market are increasing asking prices and the spinners unwillingly will have to purchase quality cotton on prices of ginners' choice, other experts said.
Cotton analyst, Naseem Usman said that under the circumstances, the mills and spinners were under pressure, so that trying to lay hands over the limited local stuff. The New York cotton futures were lower on Monday. The following deals were reported: 5029 bales of cotton from Ghotki at Rs 9000, 4272 bales from Sadiqabad at Rs 9000, 629 bales from Faqeerwali at Rs 8800, 250 bales from Haroonabad at Rs 8800, 400 bales from Donga Bonga at Rs 8800, 600 bales from Dera Ghazi Khan at Rs 8700 and 400 bales from Shadam Lund at Rs 8650, 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 24-02-2020
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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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