Prices went up sharply on the cotton market on Saturday, dealers said. The official spot rate gained more Rs 100 to Rs 7400, they added. In Sindh, seed cotton prices were sharply higher by Rs 200 to Rs 2800-3100 and in the Punjab, rates were at Rs 2600-3100, they said. In the ready session, around 4000 bales of cotton changed hands between Rs 6300-8000, they said.
Market sources said that needy spinners indulged in panic buying and this factor helped the rates to move up sharply. Commenting on the price flare-up, cotton analyst, Naseem Usman said that as a result of higher cotton prices, cotton yarn also showed slight improvement. Strong demand from needy spinners causing sharp rise in the lint cotton, he added.
Shortage of lint cotton is creating uncertainties among spinners, so that they are grabbing some deals of quality lint. Persistent rise in global prices also influenced the local market. According to the report, the US Department of Agriculture (USDA), export increased by 31 percent, which also played an important role behind the rise of cotton prices.
Adds Reuters: In New York, cotton futures were up on Friday. The following deals were reported: 1200 bales of cotton from Rahim Yar Khan at Rs 7400/8000, 400 bales from Alipur at Rs 6900, 1200 bales from Khanewal at Rs 6300/6750, 200 bales from Vehari at Rs 6700, 200 bales from Burewala at Rs 6600, 200 bales from Hasilpur at Rs 6600 and 200 bales from Yazman Mandi at Rs 6300, 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"
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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 09.03.2018
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37.324 kg 7,400 145 7,545 7,445 + 100/-
Equivalent
40 kgs 7,931 155 8,086 7,978 + 108/-
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