The mills kept on the sidelines on the cotton market on Thursday despite the emergence of some positive signs on the economic front, dealers said.
The official spot rate maintained overnight levels at Rs9000, they added. In the ready session, no deals finalised, dealers said.
Rate of seed cotton per 40kg in Sindh low quality was at Rs2800, while the best quality was unchanged at Rs4100, and in the Punjab prices of low quality were at Rs2800 while the fine type was available at Rs4600, they said.
In Sindh, Binola prices per maund were at Rs1400-1800, in Punjab rates were at Rs1650-1800, they said and the rate of polyester fibre was at Rs170 per kg, they added.
According to the market sources, textile sector is achieving concessions from the government to improve performance of export sector, likely decline in interest rates and increase in dollar's rate versus the rupee will definitely help in reviving the businessmen interest in fresh deals.
Cotton analyst, Naseem Usman said that cotton business is started showing improvement but locally mills and spinners adopting wait-and-see mood, but hopefully, it looks that millers will come back to replenish their stock.
Commenting on the rupee's depreciation versus the dollar in the local currency market, Forex Association of Pakistan (FAP), President, Malik Bostan said that most of the foreigners are liquidating their position instead of investing; this is a leading factor, which created dearth of dollar these days.
Like other people, we hope normalcy will revive in the near future, other brokers said.
Adds Reuters: ICE cotton futures edged higher on Wednesday, supported by mill buying ahead of the weekly export sales report from the United States Department of Agriculture (USDA).
Cotton contract for May rose 0.18 cent, or 0.3%, to 61.59 cents per lb as of 2:19 p.m. EDT (1819 GMT). It traded within a range of 61.31 and 61.94 cents a lb.
Total futures market volume fell by 9,258 to 26,919 lots. Data showed total open interest gained 164 to 210,796 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 11-03-2020
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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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