Business activity improved on the cotton market on Tuesday as mills indulged in purchasing of fine type, dealers said. The official spot rate unchanged at Rs 8,700, they added. In the ready session, approximately, 2400 bales of cotton changed hands between Rs 8800-8900, 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, short supply position of quality cotton is causing firmness in the rates.
Some brokers said that since the exports of textile products started showing progress, prices started showing steady trend, mainly because of short supply position. Some leading sellers, however, were not in favour of fresh selling in anticipation of rise in prices.
Cotton analyst Naseem Usman said that in recent Pakistan Cotton Ginners Association (PCGA) report showed that nearly 7 percent decline in cotton production at 10.762 million bales, to propel ginners to refrain from hectic selling. Cotton prices were higher in India and other parts of the world, they said.
Adds Reuters: ICE cotton futures settled lower on Monday in light volume, while investors closely tracked developments in the trade negotiations between the United States and China. The most active cotton contract on ICE Futures US, the May contract settled down 0.23 cent, or 0.30 percent, at 75.27 cents per lb.
Total futures market volume fell by 1,075 to 22,644 lots. Data showed total open interest gained 30 to 221,011 contracts in the previous session. The following deals reported: 1200 bales of cotton from Ghotki at Rs 8900, 1000 bales from Sadiqabad at Rs 8800 and 200 bales from Rahim Yar Khan at Rs 8800, 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 18-03-2019
===========================================================================
37.324 kg 8,700 160 8,860 8,860 Nil
Equivalent
40 kgs 9,324 171 9,495 9,495 Nil
===========================================================================
Comments
Comments are closed.