Mills' interest in local cotton buying pushed the volume of business higher on the domestic market on Friday, dealers said. The official spot rate was unchanged at Rs 8,500, they added. In the ready session, about 12000 bales of cotton changed hands between Rs 7300-8800, they said. Prices of seed cotton in Sindh and Balochistan were at Rs 3000-3500 and in Punjab seed cotton prices at Rs 3000-3600, they said.
According to the market sources, persisted tensions between India and Pakistan, creating uncertainties among the local importers, so mills have decided to purchase local cotton, instead of keeping themselves in wait-and-see position. Cotton analyst, Naseem Usman said that under the circumstance, local businessmen and traders are upset and trying to reduce their losses for the near future.
They are facing financial losses because of huge stock of unsold cotton yarn and shortage of fine cotton, they said. Adds Reuters: ICE cotton futures on Thursday jumped more than 2 percent to hit their highest level in two-weeks on a report about a potential breakthrough in the US-China trade dispute. The most active cotton contract on ICE Futures US, the May contract, settled up 1.85 cent, or 2.56 percent, at 74.01 cents per lb. Total futures market volume rose by 13,818 to 47,252 lots. Data showed total open interest fell 6,618 to 223,795 contracts in the previous session.
The following deals reported: 400 bales of cotton from Faqeerwali at Rs 7300, 2200 bales from Haroonabad at Rs 7450/8500, 400 bales from Mian Chunnu at Rs 8475, 400 bales from Bahawalpur at Rs 8300, 1200 bales from Sadiqabad at Rs 8800, 600 bales from Tonsa Shareef at Rs 8150, 3300 bales from Alipur at Rs 8725, 1400 bales from Jalalpur at Rs 8725 and 2000 bales from Khanpur at Rs 8800, 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 21-02-2019
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37.324 kg 8,500 160 8,660 8,660 NIL
Equivalent
40 kgs 9,109 171 9,280 9,280 NIL
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