No any deal was reported on the cotton market on Wednesday as mills preferred to import lint from other countries instead of local buying due to higher rates, dealers said. The official spot rate maintained week-end level at Rs 9000, they added. In the ready session, not a single deal reported till our going to the press, dealers said.
Rate of seed cotton per 40kg in Sindh low quality was at Rs 2800, while the best quality was unchanged at Rs 4100, and in the Punjab prices of low quality were at Rs 2800 while the fine type was available at Rs 4600, they said. In Sindh, Binola prices per maund were at Rs 1400-1800, in Punjab rates were at Rs 1650-1800, they said and the rate of polyester fibre was at Rs 170 per kg, they added.
Market sources said that the mills and spinners were on the sidelines due to lack of buying interest. Buying interest picking up in the international market as uncertainties and fears about coronavirus are reducing but with the gradual pace, they observed. Cotton analyst, Naseem Usman said a tug of war began between buyers and sellers, but it looks that prices may not increase sharply in the coming days.
Adds Reuters: Cotton futures fell on Tuesday, following a decline in equity markets weighed down by renewed fears that the coronavirus will lead to global economic slowdown even as the US Federal Reserve cut interest rates to help cushion the impact. Cotton contracts for May fell 0.45 cent, or 0.7%, at 62.93 cents per lb as of 2 PM EST (1900 GMT). It traded within a range of 62.71 and 65.07 cents a lb. Total futures market volume fell by 29,041 to 31,592 lots. Data showed total open interest gained 2,269 to 202,008 contracts in the previous session.
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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 03-03-2020
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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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