Prices maintained steady trend on the cotton market on Wednesday as the ginners refrained from selling in a big way in anticipation of rise in rates in coming days, dealers said. The official spot rate unchanged at Rs 8,600, they added. In the ready session, over 10,000 bales of cotton changed hands between Rs 5400-8800, they said. Prices of seed cotton in Sindh were at Rs 3000-3500, in Punjab seed cotton prices at Rs 3000-3600 and in Balochistan prices were at Rs 3200-3500, they said.
According to the market sources, the ginners were not interested in big deals due to likely increase in rates. Cotton analyst Naseem Usman said that buyers were facing shortage of fine type and trying to lay hands as much as they can but the ginners did not oblige them because prices were not matching with their psychological levels. Besides, he observed that cotton yarn is in demand as buyers were making deals, this factor created a kind of satisfaction among the sellers.
It looks that the rates may go up in the coming days due to shortage of the commodity, other brokers said. Cotton prices maintained firm trend in Indian markets, they said. Adds Reuters: ICE cotton futures jumped more than 2 percent to a near three-month high on Tuesday, as investors bid up the natural fibre in anticipation of a possible trade deal between the United States and China, while a weaker dollar provided further support.
The most active cotton contract on ICE Futures US, the May contract, settled up 1.65 cents, or 2.25 percent, at 74.85 cents per lb. Total futures market volume rose by 20,888 to 41,458 lots. Data showed total open interest gained 1,255 to 221,092 contracts in the previous session.
The following deals were reported: 94 bales of cotton from Tando Adam at Rs 5400, 2400 bales from Rahim Yar Khan at Rs 8800, 400 bales from Shahdadpur at Rs 8100, 1100 bales from Khairpur at the same rate, 2624 bales from Ghotki at Rs 8700-8750, 400 bales from Khanpur at Rs 8750, 1200 bales from Layyah at Rs 8500, 600 bales from Yazman Mandi at Rs 8100 and 200 bales from Pul Baghar at Rs 7800, 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"
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 12-03-2019
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37.324 kg 8,600 160 8,760 8,760 NIL
Equivalent
40 kgs 9,217 171 9,388 9,388 NIL
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