Cotton spot rate remains unchanged

The official spot rate was unchanged as there was no physical activity seen on the cotton market these days due to lockdown to tackle with the coronavirus, some sealers said on phone on Wednesday.

The official spot rate was unchanged at Rs8800, dealers 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 Rs167 per kg, they added.

Commenting on the uncertainties created by the coronavirus, cotton analyst, Naseem Usman said that the government allowed textile industry to open mills to less economic problems but some workers are facing problems in starting their business, particularly in Sind.

Adds Reuters: ICE cotton futures edged lower on Tuesday as investors liquidated their long positions, but gains in the stock market amid hopes of the novel coronavirus outbreak slowing limited the losses.

The cotton contract for May settled down 0.15 cent, or 0.3%, at 52.9 cents per lb. It traded within a range of 52.36 and 53.58 cents a lb, hovering near an over one-week peak of 53.86 cents hit on Monday.

Total futures market volume fell by 11,798 to 53,438 lots. Data showed total open interest fell 4,270 to 187,845 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  07-04-2020
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37.324 kg         8,800       160         8,960        8,960            NIL
Equivalent
40 kgs            9,431       171         9,602        9,602            NIL
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