Wait-and-see mood prevailed on the cotton market on Friday as both buyers and sellers were not ready to oblige each others, dealers said.
The official spot rate maintained week-end level at Rs 9000, they added. In the ready session, no deal was reported, dealers said.
Rate of seed cotton per 40kg in Sindh low quality was at Rs 2800, while the best quality was unchanged at Rs 4100, and in the Punjab prices of low quality were at Rs 2800 while the fine type was available at Rs 4600, they said.
In Sindh, Binola prices per maund were at Rs 1400-1800, in Punjab rates were at Rs 1650-1800, they said and adding that rate of polyester fibre was down by Rs 3 to Rs 170 per kg, they said.
Market sources said that on the one hand, the mills were prepared to pay rates of lints above their psychological levels, on the other hand, the ginners were taking interest in brining down the rates as now they have limited stock of unsold cotton.
Cotton analyst, Naseem Usman said that it looks that mills may come back to buy local stuff because the government is taking measures to keep away from epidemic coronavirus. There are some checks and restrictions on the entry of people from the neighbouring countries, so, how importing products can reach the country.
Then the ginners will raise asking prices to gain profit, other brokers said.
Adds Reuters: ICE cotton futures rose on Thursday, propelled by strong US export sales data, but the rapid spread of coronavirus around the world and its impact on demand for the natural fibre kept prices in check.
Cotton contracts for May rose 0.23 cent, or 0.4%, to 63.21 cents per lb. as of 2:05 PM EST (1905 GMT). It traded within a range of 62.72 and 64.15 cents a lb.
Total futures market volume fell by 8,940 to 24,867 lots. Data showed total open interest gained 3,685 to 205,428 contracts in the previous session.
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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 05-03-2020
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37.324 kg 9,000 160 9,160 9,160 NIL
Equivalent
40 kgs 9,645 171 9,816 9,816 NIL
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