Another dull day witnessed on the cotton market on Wednesday due to short supply position, dealers said. The official spot rate maintained overnight levels at Rs 9000, they added. In the ready session, deals could not be confirmed as mills and spinners failed to oblige ginners, 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. Some brokers said that during the last seasons, some mills lay hands over the fine quality cotton lint, but today, they were active to replenish their stock, the ginners were not ready to make any deal below their psychological levels.

They observed that the ginners may not take interest in fresh deals these days because of rains in some parts of the country. Cotton analyst, Naseem Usman said that the government has late announced some practical measures, including provision of cotton seeds to improve production in the country, but growers may not achieve their desired target.

Other brokers sharing the same ideas said that due to loss in cotton, most of growers started sowing chillies and more sugarcane production in lower Sindh. In the meantime, a temporary halt in import and export, increase in dollar's value likely to help in improving trading activity in days to come, other experts said.

According to reports, the Economic Coordination Committee (ECC) has approved a proposal by power division for a special relief package of 20 billion rupees to further continue provision of subsidized electricity until June this year to five export oriented sectors Cotton prices were mostly higher in the international markets, 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 10-03-2020

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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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Copyright Business Recorder, 2020

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