Modest trade activity was witnessed on the cotton market on Saturday as the ginners preferred to keep on the sideline after the Pakistan Cotton Ginners Association (PCGA) expected fortnightly report, dealers said.
The official spot rate maintained overnight level at Rs9000, they added. In ready session, over 3000 bales of cotton changed hands between Rs8750-9290, they said.
Rate of seed cotton per 40kg in Sindh low quality was at Rs2800, while the best quality was at Rs4200, and in the Punjab prices were at Rs3000 while the fine type was at Rs4600, they said.
In Sindh, Binola prices per maund were at Rs1400-1800, in Punjab rates were at Rs1650-1800, they said and the rate of polyester fibre was at Rs181 per kg, they said.
According to the market sources, the Pakistan Cotton Ginners Association (PCGA) issued its fortnightly report on 8.3 million bales, depicting 20.26 percent down against the last year. Cotton analyst, Naseem Usman said that the mills were expecting to cut in cotton arrivals, so the mills tried to lay hands over the fine type but the ginners showed less interest in fresh deals.
Now, under the circumstances it looks that the prices may go up in the coming days, other cotton analysts observed.
Adds Reuters: ICE cotton futures rose on Friday on market optimism over the signing of a Phase 1 deal with China and the US Senate's approval of a revised North American trade agreement.
It was further boosted by speculative buying.
Cotton contracts for March rose 1.01 cent, or 1.44%, at 71.23 cents per lb by 12:50 p.m. EST (1750 GMT).
Total futures market volume fell by 1,554 to 24,546 lots. Data showed total open interest gained 109 to 251,730 contracts in the previous session.
The following deals reported: 800 bales from Rahim Yar Khan at Rs9100, 1600 bales from Khanpur at Rs9150-9200, 1000 bales from Fort Abbas at Rs8750-9200, 200 bales from Burewala at Rs9290 (seed) and 200 bales from Mian Channu at Rs9280 (seed), 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 17-01-2020
===========================================================================
37.324 kg 9,000 160 9,160 9,160 NIL
Equivalent
40 kgs 9,645 171 9,816 9,816 NIL
===========================================================================