Trading activity failed to show any significant improvement on the cotton market on Tuesday despite the fact that the Pakistan Cotton Ginners' Association (PCGA) issued low seed cotton arrivals figure in its fortnightly report, dealers said.
The official spot rate maintained week-end level at Rs 9000, they added. In the ready session, 400 bales of cotton from Rahim Yar Khan finalised at Rs 9000, dealers 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 170 per kg, they added. According to PCGA report, seed cotton (Phutti) equivalent to 8.565 million or 8,565,376 bales has reached ginneries across Pakistan till March 1, registering 20.26 per cent shortfall compared to corresponding period of last year.
Commenting on the low seed cotton arrivals, they said that the European and other textile exporting countries shifted their booking orders from China to Pakistan, Bangladesh and India due to coronavirus. Cotton analyst, Naseem Usman said the cotton prices likely to go up in days to come, besides, the US-Afghan pact will also provide peace and stability in the region.
Adds Reuters: Cotton futures rose as much as 4% on Monday, supported by mill buying and an up tick in risk sentiment, while a slide in the dollar added to the upbeat mood. Cotton contracts for May settled up 1.89 cents, or 3.1%, at 63.38 cents per lb., after hitting over a four-month low in the previous session.
The May contract traded within a range of 61.7 and 64.24 cents a lb. Total futures market volume fell by 7,608 to 60,450 lots. Data showed total open interest gained 2,688 to 199,739 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 02-03-2020
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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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