Dullness remains on cotton market

The trade activities remained dull on the cotton market as the government has extended the lock down for another two weeks.

Market sources told Business Recorder on Thursday that spot rate remained unchanged at Rs 8800. The market sources also said that although no trading was seen in Binola. However, Binola was available in both Sindh and Punjab at the rate of Rs 1600 to Rs 1800 per maund. Sources also said that cotton seed was not available for trading as ginners had all the stock of Binola. The rate of cotton in Sindh and Punjab is in between Rs 7000 to Rs 8800 per maund.

Cotton Analyst Naseem Usman told Business Recorder that whenever the market will open after the lock down the rate of cotton will remain stable. He dispelled the impression that market will witness a down ward trend because the ginners had the stock of 5 lac bales which will be helpful in stabilising the rate.

He also said that according to the information received growers are sowing rice and other crops in the cotton sowing areas of lower Sindh. He said it is expected that cotton sowing area will be reduced by 20 percent.

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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  15-04-2020
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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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