Slight decline was seen on the cotton market on Saturday in the process of moderate trade activity, dealers said. The official spot rate dropped by Rs 100 to Rs 8900, they added. Prices of seed cotton in Sindh low type shed Rs 100 to Rs 4000 while the best type fell sharply by Rs 300 to Rs 4100 and in the Punjab, rates followed the same pattern showing Rs 100 decline to Rs 3800 while the fine quality dropped sharply by Rs 200 to Rs 4100, they said. In Balochistan, prices of seed cotton were also come under pressure, dropping Rs 100 to Rs 4100-4300, they said.
In ready session, around 7,000 bales of cotton finalised between Rs 8900-9200, they said. Market sources said that rates drifted lower following the United States Department of Agriculture (USDA) report, depicting a sharp rise in the world cotton production. Mills and spinners who were on the sidelines during the last sessions, now started buying to cover the immediate requirements, they said.
Cotton analyst, Naseem Usman said that rates may show soft trend in the coming days. Presently, spells of rains stopped in Sindh and Punjab, more rains are expected in the near future, he added.
According to Reuters, Indian farmers have planted summer-sown crops on 92.476 million hectares as of August 10, down 1.5 percent from a year earlier, government data showed.
Cotton sowing was down 3.9 percent, while rice planting lagged 2.9 percent.
Monsoon rainfall was 11 percent lower than normal as of August 10, but in some states such as Manipur the rainfall deficit was as high as 65 percent, data compiled by the state-run India Meteorological Department (IMD) showed. India's monsoon rains, a crucial element for the country's farm output, are likely to be below average in 2018, after the country experienced lighter than usual rainfall during the first half of the season.
Following deals reported: 1800 bales of cotton from Tando Adam at Rs 8950-9100, 1400 bales from Shahdadpur done at Rs 8900-9050, 1000 bales from Sanghar at Rs 8900-9000, 400 bales from Sinjoro at Rs 9000, 200 bales from Khadro at Rs 8950, 200 bales from Shahpur Chakar at Rs 9000, 400 bales from Burewala at Rs 9150-9200, 400 bales from Chichawatni at Rs 9175-9200, 200 bales from Sahiwal at Rs 9150 and 400 bales from Toba Tek Sing at Rs 9140-9175, they added.
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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 10-08-2018
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37.324 kg 8,900 160 9,060 9,160 - 100/-
Equivalent
40 kgs 9,538 171 9,709 9,816 - 107/-
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