No major changes were seen in the present outlook on the cotton market on Friday amid slow trading activity, dealers said. The official spot rate was unchanged at Rs 7,500, they added. In the ready session, a single deal reported till our going to the press, they said. Market sources said that the ginners who have some lots of fine quality are not keen to sell at present levels in expectations of increase in the rates.
Cotton analyst, Naseem Usman said that prices were gaining ground due to delay in cotton sowing due to short supply of irrigation water, severe heat waves and because of other reasons. During the current season, the cotton production may decline shortly due to delay in sowing and as a result of damages, he added. On the other hand, some brokers said that the spinners who have already bought stocks are looking satisfied but the spinners who have not enough stocks to meet their requirements were facing difficulties under the circumstances
Report showing India's 2017/18 cotton exports are likely to jump nearly 30 percent from the year before to a four-year high of 7.5 million bales, as climbing global prices and a weaker rupee boost overseas demand.
Increased supply from India could drag on a rally in international prices for the commodity and would likely compete with shipments to Asia from exporters like the United States, Brazil and Australia.
In the world market, cotton prices were higher on strong demand, they said.
The following deal was reported: a deal of 800 bales of cotton from Mian Channu at Rs 6000, 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 24-05-2018
===========================================================================
37.324 kg 7,500 145 7,645 7,645 NIL
Equivalent
40 kgs 8,038 155 8,193 8,193 NIL
===========================================================================
Comments
Comments are closed for this article.