Steady trend prevailed on the cotton market on Thursday in the process of modest trading activity, dealers said. The official spot rate was unchanged at Rs 8800, they added. Rates of seed cotton per 40kg from Lower Sindh were available at Rs 3750-4000, they said. Binola per maund prices were higher at Rs 1600-1650, they said. In the ready session, approximately, 6000 bales of cotton changed hands between Rs 8400-9200, they said.
Market sources said that business activity improved on expectations of revival of incentives by the government, such as zero-rated regime.
Cotton Analyst, Naseen Usman said that cotton market saw slight stability as both buyers and sellers willingly indulged in buying of fine quality lint cotton.
They observed that the arrival of phutti is improving with the passage of time, it's good but participants were facing a kind of uncertainty following the announcements of sales taxes in the federal budget 2019-20.
Adds Reuters: ICE Cotton futures prices rose on Wednesday, after one of the largest exporter of the natural fibre, the United States, and the biggest consumer, China, agreed to revive their trade talks ahead of the Group of 20 Summit.
The most-active cotton contract on ICE Futures US, the third-month December contract, settled up 0.34 cent, or 0.51%, at 67.16 cents per lb. It traded within a range of 66.71 and 67.59 cents a lb.
Total futures market volume fell by 19,407 to 27,016 lots. Data showed total open interest fell 4,459 to 180,266 contracts in the previous session.
Following deals were reported: 2000 bales of cotton from Ghotki sold at Rs 9125-9200, 1400 bales from Rahim Yar Khan done at Rs 8800, 400 bales from Tonsa Shareef at Rs 8600, 1400 bales from Alipur at Rs 8400 and 1200 bales of cotton from Lower Sindh (new crop) finalised at Rs 8400-Rs 8500, 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 19-06-2019
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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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