Main participant adopted wait-and-mood on the cotton market on Monday in expectations of positive developments, dealers said.
The official spot rate was unchanged at Rs 8,700, they added. Prices of seed cotton in Sindh were at Rs 3000-3800, in the Punjab seed cotton prices at Rs 3000-3800 and in Balochistan, rates of seed cotton were at Rs 3200-3800, they said.
In the ready session, not a single deal reported till our going to the Press, they said.
According to the market sources a kind of dullness persisted as both mills and ginners showed no interest in fresh deals.
Cotton analyst, Naseem Usman said that trading activity slowed down despite short crop production in the country. Traders related to the textile sector is expecting better outcome of three-day Heim Textil, starting from Tuesday in Frankfurt (Germany), nearly 222 Pak firms are participating the exhibition.
Furthermore, main participants adopted wait-and-see mood, awaiting for positive results from the US-Chine trade talks, due shortly, he added.
Besides, he said that Cotton Association of India (CAI) down sized the estimate of cotton production to 335 million bales for the current season.
Experts said that the huge stock of unsold cotton yarn is creating a financial problem. They said that in Faisalabad a large number of power looks have shut down and owners were selling their heavy machineries in scrap, in brief, it looks that cotton economy is currently under a crisis like situation.
Cotton prices went up in the international markets, 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 05-01-2019
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37.324 kg 8,700 160 8,860 8,860 NIL
Equivalent
40 kgs 9,324 171 9,495 9,495 NIL
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