Listless business seen on cotton market

The rate of cotton will remain stable when the market will reopen again after the lock down. Due to the lock down no major activity was witnessed on the cotton market on Friday.

Market sources on Friday said that spot rate remained unchanged at Rs 8800. The market sources also said that although no trading was seen in Binola. However, Binola was available in both Sindh and Punjab at the rate of Rs 1600 to Rs 1800 per maund. Sources also said that cotton seed was not available for trading as ginners had all the stock of Binola. The rate of cotton in Sindh and Punjab is in between Rs 7000 to Rs 8800 per maund.

Cotton Analyst Naseem Usman said that whenever the market will open after the lock down the rate of cotton will remain stable. He dispelled the impression that market will witness a down ward trend because the ginners had the stock of 5 lac bales which will be helpful in stabilising the rate.

Naseem also said that according to the information cotton is cultivated at 10 percent area in the Umer Kot while due to the climate change farmers were unable to sow cotton on 50 percent area of the district.

He said that in Sanghar district this year due to the availability of water cotton was cultivated in the area designated for cotton sowing. However, he said that farmers were complaining about the quality of the seeds and low germination.

As per information received growers are sowing rice and other crops in the cotton sowing areas of lower Sindh. He said it is expected that cotton sowing area will be reduced by 20 percent.

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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  16-04-2020
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37.324 kg         8,800        160        8,960        8,960            NIL
Equivalent
40 kgs            9,431        171        9,602        9,602            NIL
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