Trade activity improved on the cotton market on Wednesday in the process of rising demand by the mills and spinners, dealers said. The official spot rate was inert at Rs 8900, they added. In ready session, over 5000 bales changed hands between Rs 8300-9200, 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 the Punjab rates were at Rs 1650-1800, they said and added that polyester fibre was available at Rs 179 per kg.
Market sources said that mills and spinners did not show reluctance in purchasing of fine type despite the fact that the government will remove all kinds of duties on cotton from Jan 15, 2020.
Cotton analyst, Naseem Usman said that the government has to spend huge foreign exchange on import of cotton to help meet the wide gap between demand and supply caused by short supply in the local market. In the meantime, buyers remained focused on quality cotton, this factor would not allow rates to come down in the near future, other experts said.
Reuters adds: ICE cotton futures fell on Tuesday in thin trade as investors booked profits, while the fibre registered its second consecutive yearly loss due to US-China trade tensions. Cotton contracts for March settled down 0.51 cent, or 0.73%, at 69.05 cents per lb.
The contract traded within a range of 68.80 to 69.72 cents a lb, having touched a near-seven-month high earlier in the day. Total futures market volume fell by 5,862 to 21,486 lots. Data showed total open interest gained 5,715 to 222,851 contracts in the previous session.
The following deals reported: 1200 bales of cotton from Panu Aqil at Rs 9200, (Stock) 200 bales from Kot Sabzal at Rs 9200, (Prime Cotton) 1000 bales from Rahim Yar Khan at Rs 9000, 600 bales from Sadiqabad at Rs 9000, 600 bales from Khanpur at Rs 9000, 800 bales from Fort Abbas at Rs 8500, 400 bales from Yazman Mandi at Rs 8400 and 600 bales from Haroonabad at Rs 8300, 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 31-12-2019
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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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