Official spot rate picked up on the cotton market on Friday in the process of modest trading activity, dealers said. The official spot rate was higher by Rs 50 to Rs 8,900, they added. In the ready session, about 1800 bales of cotton changed hands between Rs 7850-9100, they said. According to the market sources, declining stocks of quality cotton with ginners and persistent demand from mills kept cotton prices on the higher side.
Cotton analyst, Naseem Usman said that mills were trying to buy quality cotton to replenish their stock. Whereas, the textile spinners were not able to purchase fine type of cotton due to same problem, he added. Other brokers said that recent heavy rains and storm in the Punjab damaged the standing cotton production, it appears that this factor may cause increase in the rates in the coming days. The other factor is that production of cotton may be delayed, they said.
Besides, under the circumstances, the ginners, who have only five lacs bales of cotton with them, trying hard to gain profit as much as they can, they said.
Reuters adds: ICE cotton futures settled higher on Thursday as firm weekly export sales report from the United States Department of Agriculture reassured investors that demand for US cotton was robust.
The most-active cotton contract on ICE Futures US July settled up 1.2 cent, or 1.6 percent, at 78.32 cents per lb.
Total futures market volume fell by 1,542 to 24,413 lots. Data showed total open interest fell 1,098 to 212,619 contracts in the previous session.
The following deals reported: 400 bales of cotton from Khanpur Mehar at Rs 9100, 400 bales from Mirpur Mathelo at Rs 9050, 600 bales from Layyah at Rs 8250 and 400 bales from Shujabad at Rs 7850, 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 25-04-2019
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37.324 kg 8,900 160 9,060 9,010 + 50/-
Equivalent
40 kgs 9,538 171 9,709 9,656 + 53/-
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