Selective buying was seen on the cotton market on Wednesday amid arrivals of the Pakistan Cotton Ginners Association (PCGA) fortnightly report, showing figures are down by 6.7 percent against the last year, dealers said. The official spot rate was unchanged at Rs 8,600, they added. In the ready session, around 3000 bales of cotton changed hands between Rs 8050-8850, they said. Prices of seed cotton in Sindh were at Rs 3000-3500 and in Punjab seed cotton prices were at Rs 3000-3600, they said.
According to the fortnightly report of Pakistan Cotton Ginners Association (PCGA) issued here on Thursday, seed cotton (Phutti) equivalent to 10.77 million or 10,772,306 bales have reached ginneries across Pakistan till April 1, 2019, registering a shortfall by 6.7 percent compared to corresponding period of last year.
Out of total arrivals, over 10.76 million or 10,769,139 bales have undergone the ginning process. Cotton analyst, Naseem Usman said that latest figure is showing a shortfall against the last year, may help the rates stabilising in the near future. The ginners have only eight lac bales of unsold cotton, which is short of demand, he noted.
He also said that cotton prices gained momentum in the international market.
Reuters adds: ICE cotton futures were barely changed on Tuesday, as investors closely tracked developments in the trade negotiations between the United States and China, while prices experienced strong technical resistance levels.
The front-month cotton contract on ICE Futures US, settled down 0.09 cent, or 0.12 percent, at 77.27 cents per lb.
Total futures market volume fell by 2,949 to 34,971 lots. Data showed total open interest gained 2,044 to 227,930 contracts in the previous session.
The following deals reported: some 1200 bales of cotton from Rahim Yar Khan at Rs 8800-8850, 400 bales from Khanpur at Rs 8800, 589 bales from Lodhran at Rs 8100 and 600 bales from Haroonabad at Rs 8050, 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"
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 02-04-2019
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37.324 kg 8,600 160 8,760 8,760 Nil
Equivalent
40 kgs 9,217 171 9,388 9,388 Nil
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