The official spot rates dropped modestly on the cotton market amid subdued business activity, dealers said. The official spot rate shed more Rs 50 to Rs 8700, they added. In the ready session, about 2344 bales of cotton changed hands between Rs 7500-8800, they said.
Market sources said that trading activity came down in line with the global track and it appeared that business may not pick up in the near future. The ginners were not ready to lower asking prices as they have nearly 4 million bales of unsold cotton, they said.
Commenting on impact of the International Monetary Fund (IMF) deal with the government, cotton analyst, Naseem Usman said that if the government increases energy and interest rate, it will increase cost of production, which will discourage doing business in the country. In the meantime, dollar's surge will definitely give a boost to the export of textile products, they said. In New York, cotton futures were sharply down and rates of cotton also fell in Indian market, they said.
The following deals were report: approximately 2000 bales of cotton from Rahim Yar Khan done at Rs 8800 and 344 bales from Vehari at Rs 7500, 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 11-05-2019
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37.324 kg 8,700 160 8,860 8,910 - 50/-
Equivalent
40 kgs 9,324 171 9,495 9,548 - 53/-
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