Firmness prevailed on the cotton market on Saturday as rates held present levels amid panic buying of lint cotton by mills, dealers said. The official spot rate was unchanged at Rs 9000, they added. In ready session, over 18,000 bales of cotton changed hands between Rs 7100-9300 (conditional), they said.

Rates of seed cotton per 40kg in Sindh were at Rs 2600-4300 and in the Punjab prices were at Rs 3500-4400, they said. In Balochistan, seed cotton prices were at Rs 3500-4300, they said.

In Sindh, Binola prices per maund were at Rs 1400-1700, in Punjab and Balochistan rates were at Rs 1500-1600, they said and adding that polyester fibre was available at Rs 181.

Market sources said that discouraging reports about the availability of cotton propelled mills to lay hands over the cotton as much as they can. The growers and farmers are urging government to announce cotton support price as early as possible, they said.

The government has announced support price for other crops, except cotton crop, it is hurting cotton growers' interest, analyst, Naseem Usman said. Besides, reports showing that the Lahore Chamber of Commerce and & Industry (LCCI) has urged the State Bank of Pakistan (SBP) to bring down the mark-up rate to single digit in the larger interest of trade, industry and economy.

Reduction in mark-up rate from existing 13.25 percent to single digit would be a great favour to the industrial sector. It would help the government to attain the target of industrial growth, would reduce the cost of product and would also bring capital of the banks into circulation.

Adds Reuters: ICE cotton futures slipped on Friday in low-volume trade a day after the US Thanksgiving holiday, as uncertainty over a trade deal between the United States and China weighed on investor sentiment. Cotton contract for March settled down 0.45 cent, or 0.68%, at 65.36 cents per lb.

Total futures market volume fell by 2,612 to 14,204 lots. Data showed total open interest gained by one to 199,012 contracts in the previous session.

The following deals reported: 2000 bales of cotton from Nawabshah done at Rs 7100, 200 bales from Hala at Rs 8500, 400 bales from Panu Aqil at Rs 9200, 600 bales from Mirpur Mathelo, same figure from Dherki all done at the same rate, 2000 bales from Ghotki at Rs 9275-9300 (conditional), 1000 bales from Fort Abbas at Rs 8400-9000 3400 bales from Sadiqabad at Rs 8975-9075, 1000 bales from Khanpur at Rs 8650, 2000 bales from Liaquatpur at the same rate, 600 bales from Daranwala at Rs 8350-8400, 400 bales from Yazman Mandi at Rs 8375, 600 bales from Bahawal Nagar at Rs 8100, 1400 bales from Chistian at Rs 8000, 1000 bales from Haroonabad at Rs 7900 and 400 bales from Vehari at Rs 7950`, they said.

===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
                     FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference
                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi
                                                  on 29-11-2019
===========================================================================
37.324 kg         9,000       160         9,160        9,160            NIL
Equivalent
40 kgs            9,645       171         9,816        9,816            NIL
===========================================================================

Copyright Business Recorder, 2019