Cotton market closed the final session of 2019 on happy note due to renewed buying by mills, dealers said on Tuesday. The official spot rate was unchanged Rs 8900, they added. In ready session, 3600 bales changed hands between Rs 8000-9100, they said.
Rate of seed cotton per 40kg in Sindh low quality was at Rs 2800, while the best quality was available at Rs 4200, and in the Punjab prices were at Rs 3000-4500, they said. In Sindh, Binola prices per maund were at Rs 1400-1800, in Punjab rates were at Rs 1650-1800, they said and adding that polyester fibre was available at Rs 179 per kg, they said.
According to the market sources, mills indulged in renewed buying of lint cotton to replenish their stock. They said that some leading mills managed to lay hands over the best type of cotton. Cotton analyst, Naseem Usman said that despite the Economic Coordination Committee (ECC) announcement to withdraw duties on imported cotton from January 15, 2020, the spinners did cautious buying of cotton.
The ECC decided to withdraw 3 percent regulatory duty, 2 percent additional customs duty and 5 percent sales tax on the import of cotton from January 15, 2020. Prices may maintain firm trend in the coming days, other brokers said. In the meantime, the ginners were looking upset due to withdrawal of duties, they observed.
Reuters adds: ICE cotton futures rose over 1% on Monday helped by positive statements about the potential signing of the US-China Phase 1 trade deal and a falling dollar. Cotton contracts for March rose 0.75 cent, or 1.09%, to 69.67 cents per lb by 13:11 p.m. EST (1811 GMT). Total futures market volume fell by 1,061 to 19,616 lots. Data showed total open interest gained 2,057 to 217,136 contracts in the previous session.
The following deals reported: 400 bales of cotton from Ghotki at Rs 9100, 200 bales from Adilpur at Rs 9100, 400 bales from Mirpur Mathelo at Rs 9100, 600 bales from Sadiqabad at Rs 8500, 400 bales from Yazmam Mandi at Rs 8400, 1000 bales from Faqeerwali at Rs 8450 and 600 bales from Muhammadpur Dewan at Rs 8000, 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 30-12-2019
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37.324 kg 8,900 160 9,060 9,060 NIL
Equivalent
40 kgs 9,538 171 9,709 9,709 NIL
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