A kind of firmness prevailed on the cotton market on Wednesday in the process of slow trading activity, dealers said. The official spot rate was unchanged at Rs 7,600, they added. Prices of seed cotton in Sindh were available at Rs 3800-4000 and in Punjab, rates were at Rs 3900-4100, they said. Nearly, 1200 bales of cotton (new crop) from Shahdadpur, Sanghar and Tando Adam sold at Rs 7800-8000, one deal of 400 bales of cotton from Rahim Yar Khan at Rs 7600, they said.
Commenting on the present trend in the market, cotton analyst Naseem Usman said that most of the participants were on the sidelines due to less interest. The pace of arrivals is good and indicating that country may not face short supply of cotton in the coming days.
Other brokers said that if there is no pest attack on the standing crop, rains could be beneficial for the crop. Ginning factories have started operating in Sindh, they said. Reports showing that India's cotton output estimate cut to 37 million bales for 2017-18.
Adds Reuters: ICE cotton futures plunged 4.5 percent on Tuesday, sliding to their lowest in nearly four weeks, as concerns about an escalating trade conflict between the biggest exporter United States and top consumer China sparked a sell-off.
The most active cotton contract on ICE Futures US, the third-month December contract, settled down 3.95 cents, or 4.50 percent, at 83.82 cents per lb after hitting exchange-imposed limits for losses on the day. It traded within a range of between 83.77 and 88.3 cents a lb.
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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 19-06-2018
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37.324 kg 7,600 145 7,745 7,745 NIL
Equivalent
40 kgs 8,145 155 8,300 8,300 NIL
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