Lack of buying interest was again witnessed on the cotton market on Saturday in the process of trading, dealers said. The official spot rate was unchanged at Rs 9000, they added. In ready session, about 5,000 bales of cotton changed hands between Rs 8500-9200, they said.
Rates of seed cotton per 40kg in Sindh were at Rs 3000-4250 and in the Punjab prices were at Rs 3800-4600, they said. In Balochistan, seed cotton prices were at Rs 4200-4700, they said. In Sindh, Binola prices per maund were at Rs 1400-1700 and in Punjab rates were at Rs 1550-1750, they said and adding that polyester fibre was at Rs 183.
According to the market sources, most of the mills kept on the sidelines owing to little interest in fresh buying. Cotton analyst, Naseem Usman said that recent rains in cotton belt hit the quality of cotton, which forced buyers to keep away from new deals.
Some improvements in US-China trade talks may revive the business confidence among cotton traders and businessmen, he added. Reports showing that in fact, the textile body as usual, is drawing the attention of the government toward pesticides companies operating in the country and believed this was one of the major factor, for supplying of substandard pesticides to growers.
ICE cotton futures rose 1% on Friday, helped by a robust export sales report from the US Department of Agriculture (USDA) and renewed hopes that the United States and China will reach a trade deal. Cotton contracts for December gained 0.71 cent, or 1.1%, to 64.98 cents per lb by 11:30 a.m. EST (1630 GMT), trading within a range of 64.24 to 64.99 cents per lb. Total futures market volume fell by 17,635 to 23,752 lots. Data showed total open interest fell 642 to 231,124 contracts in the previous session.
The following deals reported: 400 bales from Pano Aqil at Rs 9200, 600 bales from Ghotki at Rs 9100, 1200 bales from Khairpur at Rs 8500/8700, 600 bales from Rahim Yar Khan at Rs 9150, 600 bales from Sadiqabad at Rs 9100, 400 bales from Chistian at Rs 8650, 400 bales from Tonsa Sharif at Rs 8900, 400 bales from Donga Bonga at Rs 8800 and 400 bales from Haroonabad at Rs 8800, dealers 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 15-11-2019
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37.324 kg 9,000 160 9,160 9,160 NIL
Equivalent
40 kgs 9,645 171 9,816 9,816 NIL
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Copyright Business Recorder, 2019
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