Cotton business likely to resume on easing of lockdown

Traders are hopeful that after the easing of lockdown in the coming days trading activity will resume.

Market sources said that government is planning to ease the lockdown from coming week. The easing of lockdown will have a positive impact on the cotton market as well.

Cotton Analyst Naseem Usman told that according to the monthly updated economic report issued by ministry of finance for the month of April 2020 during the current year according to estimates cotton production has declined by a 94 lac bales because of the bad weather conditions and the attack of insects on the cotton crop.

According to the report it is feared that wheat crop will be affected due to the attack of locusts in Punjab and Sindh. Wheat production target will not be achieved due to higher rainfall than expectations.

Naseem said that there are reports that new crop of Phutti is ready to arrive in the market. On the other hand ginners are in immense pressure as they are unable to sell cotton seed cake and stock of around five lac bales of cotton due to the continuous lockdown for the past one and a half month due to coronavirus.

He also said that spot rate remained unchanged at Rs 8800. He 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. The rate of polyester fiber decreased by Rs 7 per kg after decrease in the price of petroleum products and was available at Rs 160 per kg.

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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  29-04-2020
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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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