Firm trend maintained on the cotton market on Saturday in the process of modest trade activity, dealers said. The official spot rate was inert at Rs 8800, they added. Slight arrival was seen in the arrivals of the seed cotton from Lower Sindh was available at Rs 3800-4100 per 40kg, they said.
In the ready session, nearly 1000 bales of cotton changed hands between Rs 8900-8950, they said. According to the market sources, most of the buyers were on the sideline ahead of Eid-ul-Fitr holidays. Cotton analyst, Naseen Usman said that mills have already completed their urgent needs, so small number of buyers took part in fresh deals due to poor quality of cotton.
Several buyers were keen in purchasing of cotton after holidays in expectations of decline in rates, other brokers said. Arrivals of seed cotton will also improve and hopefully rates may come down slightly in the near future, they said.
Adds Reuters: Cotton prices fell about 2% on Friday following losses in the grain market after US President Donald Trump threatened to place tariffs on imports from Mexico. Cotton also marked its worst month in nearly three years.
The July cotton contract settled down 1.26 cents, or 1.8%, at 68.08 cents per lb.
Total futures market volume rose by 2,615 to 24,418 lots. Data showed total open interest fell 267 to 216,666 contracts in the previous session.
The following deals were report: about 200 bales of cotton from Sadiqabad sold at Rs 8950 and 800 bales of cotton from Rahim Yar Khan at Rs 8900, 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 31-05-2019
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37.324 kg 8,800 160 8,960 8,960 NIL
Equivalent
40 kgs 9,431 171 9,602 9,602 NIL
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