Cotton market: spot rates jump as volume of business improves

Official spot rates jumped on the cotton market on Wednesday amid improved volume of business, dealers said. In a single day rally, the official spot rate went up by Rs 200 to Rs 7600, they added. In Sindh and Punjab prices of seed cotton were at Rs 2800-3100, they said.
In the ready session, nearly 4000 bales of cotton finalised between Rs 6800-7900, they said. According to the market sources, modest trading activity was witnessed as a result of renewed buying by mills and spinners.
The factor behind the revival of business activity was availability of quality lint at reasonable rates. In the meantime, some leading spinners were on the sidelines as the prices were not matching with their psychological levels, besides, some of them were meeting their demand from imported cotton.
Commenting on the higher rates, cotton analyst, Naseem Usman said that the current season 2017-18, is coming to an end, lint stocks with ginners are diminishing fast owing to increased demand. The positive development is that cotton yarn was in demand in the local market, experts said and adding that approximately unsold five lac bales of cotton is with the ginners, so most of them were hoping for better profit in coming days.
In India and China, cotton prices managed to improve on good demand, they said. The following deals reported: some 400 bales of cotton from Ghotki sold at Rs 7900, 600 bales from Rahim Yar Khan at Rs 7800, 1000 bales from Sadiquabad at Rs 7800 and 2000 bales from Kabirwala at Rs 6800, 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"

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                                    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 13.03.2018

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37.324 kg          7,600      145         7,745        7,545        + 200/-

Equivalent

40 kgs             8,145      155         8,300        8,086        + 214/-

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