Volume of business improved on the cotton market on Saturday owing to fresh buying by mills and spinners, dealers said.
The official spot rate was unchanged at Rs8750, they added. In ready session, over 8,000 bales of cotton changed hands between Rs8000-8900, they said.
Rate of seed cotton per 40kg in Sindh low quality was at Rs3200, while the best quality was available at Rs4100 and in the Punjab prices were at Rs3500-4300, they said.
In Sindh, Binola prices per maund were at Rs1400-1800, in Punjab rates were at Rs1650-1800, they said and added that polyester fibre was available at Rs179 per kg.
Commenting on the direction of the market, they said that rising demand for the quality lint pushed the rates up, and it also appeared that the rates of cotton may move higher in the near future.
Some major spinners indulged in purchasing of big lot, cotton analyst, Naseem Usman said and added that the market believes that current season's lint production would be the shortest in the country's history.
He also said that liquidity crunch and restricted supply of quality cotton are basic reason behind the steady trend in the rates of cotton. It is most likely that withdrawal of import duty on cotton may be discussed in the next Economic Coordination Committee (ECC) meeting, he said.
To meet the availability of cotton easily, the All Pakistan Textile Mills Association (APTMA) is demanding removal of import duty on cotton.
Adds Reuters: ICE cotton futures rose over 1% on Friday on increased demand from speculators following yesterday's strong export sales report, while optimism around a US-China trade deal further supported the market.
Cotton contracts for March rose 0.40 cent, or 0.59%, at 67.98 cents per lb by 1:06 p.m. EST (1806 GMT).
Total futures market volume fell by 1,502 to 21,643 lots. Data showed total open interest gained 1,903 to 207,346 contracts in the previous session.
The following deals reported: 600 bales of cotton from Ghotki at Rs8900, 2000 bales from Khairpur at Rs8000/8350, 1600 bales from Sadiqabad at Rs8900, 2400 bales from Rahim Yar Khan at Rs8900, 600 bales from Hasilpur at Rs8000/8050, 400 bales from Yazman Mandi at Rs8200 and 1000 bales from Taunsa Sharif at Rs8000/8100, 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 20-12-2019
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37.324 kg 8,750 160 8,910 8,910 NIL
Equivalent
40 kgs 9,377 171 9,548 9,548 NIL
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Copyright Business Recorder, 2019