Some mills and spinners took interest in fresh buying on the cotton market on Saturday following the Pakistan Cotton Ginners Association (PCGA) fortnightly report, showing better phutti arrivals, dealers said. The official spot rate was unmoved at Rs 7,300, they added. In ready session, around 5,000 bales of cotton changed hands at Rs 7000, they said.
In Sindh seed cotton prices were inert at Rs 2600-3250, and in the Punjab, rates did not show any change at Rs 2600-3200, they said. Some experts said that under the circumstances, main buyers showed lacklustre attitudes due to less buying interest.
Cotton Analyst, Naseem Usman said that cotton production may improve as the government is going to take measures to increase output to keep a balance between demand and supply. Besides, to protect local industry, the Plant Production Department (PPD) has adopted a move to stop entry of cotton through land routes as this will dis-allow contaminated cotton to enter in the country, they said.
The PCGA issued fortnightly report till February 1st at 11.34 million bales, depicting a rise of over 7 percent against the last year, they said. The New York cotton futures drifted lower on Friday, they added.
They also said that a kind of dullness prevailed in the market as the rates of cotton yarn are not picking up because the value-added sector is observing global market where a weak US dollar against the world major currencies continue to depress commodity prices. Only one deal was reported till our going to the press as 5000 bale of cotton from Rahim Yar Khan sold at Rs 7000, 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"
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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 02-02-2018
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37.324 kg 7,300 145 7,445 7,445 NIL
Equivalent
40 kgs 7,823 155 7,978 7,978 NIL
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